Profit margin
Margin divides profit by revenue.
Business pricing and operations ↗THE SUMFIZZ LIBRARY
Business pricing and operations calculators
Explore 25 free tools for business pricing and operations. Find profit margin, markup pricing, target margin price and more. Each calculator explains its inputs and method, with examples you can try using your own numbers.
THE SUMFIZZ LIBRARY
What are we working out?
Markup pricing
Add markup as a percentage of cost.
Business pricing and operations ↗Target margin price
Divide cost by one minus the target margin.
Business pricing and operations ↗Break-even units
Round up to a whole unit.
Business pricing and operations ↗Break-even revenue
Contribution margin here is a share of sales after variable costs.
Business pricing and operations ↗Contribution margin
Contribution pays fixed costs before any operating profit remains.
Business pricing and operations ↗Volume discount profitability
Compares contribution at constant unit cost, with whole units and no capacity constraints.
Business pricing and operations ↗Cost-plus quote
The entered markup applies to all entered costs.
Business pricing and operations ↗Freelance hourly rate
Only the billable share of available hours generates revenue.
Business pricing and operations ↗Project profitability
Use your labour cost, not the client billing rate, to calculate project contribution.
Business pricing and operations ↗Employee hourly cost
Paid leave and nonproductive hours reduce the denominator.
Business pricing and operations ↗Payroll budget
This average-pay model assumes the same pay and cost percentage for all workers.
Business pricing and operations ↗Inventory turnover
Average inventory should be valued on the same cost basis as cost of goods sold.
Business pricing and operations ↗Reorder point
Demand during lead time plus safety stock is a simple reorder-point model.
Business pricing and operations ↗Economic order quantity
The basic EOQ model assumes steady demand, fixed ordering cost and no quantity discounts.
Business pricing and operations ↗Safety stock
Assumes independent daily demand and fixed lead time.
Business pricing and operations ↗Stock coverage
Ignores incoming orders and demand variability.
Business pricing and operations ↗Capacity utilisation
Use actual output and capacity for the same time period.
Business pricing and operations ↗Productivity rate
Count the labour hours used to produce the measured output, including all participating workers.
Business pricing and operations ↗Overall equipment effectiveness
OEE multiplies availability, performance and quality.
Business pricing and operations ↗Working capital
This is a balance-sheet measure, not the cash balance available today.
Business pricing and operations ↗Cash conversion cycle
Add inventory and collection time, then subtract supplier payment time.
Business pricing and operations ↗Invoice late-charge estimate
Uses simple daily interest on a 365-day basis.
Business pricing and operations ↗Weighted product-mix profit
Assumes the supplied product mix stays constant.
Business pricing and operations ↗Outsource versus in-house
Compare costs for the same output scope.
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