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:

Sales Margin Formula


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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