# Sales Margin Calculator

Sales margin is the method to calculate the profit earned out of a product on it's sale. Generally, we calculate the sales margin in percentage.

Let's say a shoe manufacturing company spent \$10 on direct material and labor cost for manufacturing a pair of shoes and sold it for \$15 to it's customers.

Here we could say, \$10 = direct material and labor cost

\$15 = Sales price

We could use this below formula to find sales margin:

Let's input the values onto the formula = (15 - 10 / 15) x 100

= 33.33%

Hence, the sales margin for a pair of manufactured shoe is 33.3%

Similarly, enter the sales price and direct material & labor cost in the below online sales margin calculator and click calculate button to find out the answer.

 Sales Price: \$ Direct Material and Labor Cost: \$ Sales Margin: Sales Profit: \$

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