How much money will you make?

$90

10%

$10

$100

11.11%

- Find the
**cost**of the product you want to sell. E.g. Cost = $20 - Set the sales price for your product. This is your
**revenue**. E.g. Revenue = $100 - Calculate the
**profit**of your product. Profit = Revenue - Cost. E.g. Profit = $100 - $20 = $80 - Divide the profit by the revenue price. E.g. $80 / $100 = 0.8
- Calculate the percentage value. E.g. 0.8 * 100 = 80%
- This is how you calculate the Gross margin. The full formula is Margin = (Revenue - Cost) / Revenue * 100