How to Use This Calculator
- Enter the product price per unit in the "Product Price" field
- Enter the quantity of products sold in the "Quantity Sold" field
- Enter the cost price per unit in the "Cost Price" field
- Set the tax rate (if applicable) in the "Tax Rate" field
- Click the "Calculate" button to see the sales metrics
Understanding Sales Metrics
The calculator provides several important sales metrics:
- Total Revenue: The total income from sales, including tax
- Total Cost: The total cost of goods sold
- Gross Profit: The profit before taxes and other expenses
- Gross Profit Margin: The percentage of revenue that is profit
Example
Suppose you sell a product for $25 with a cost of $15, and you sold 100 units with a tax rate of 5%:
Total Revenue = $25 × 100 × 1.05 = $2,625
Total Cost = $15 × 100 = $1,500
Gross Profit = $2,625 - $1,500 = $1,125
Gross Profit Margin = ($1,125 / $2,625) × 100 = 42.9%
Practical Applications
This calculator can help with:
- Setting product prices to achieve desired profit margins
- Analyzing sales performance
- Comparing profitability across different products
- Budget planning and financial forecasting