How To Calculate Revenue From Cost And Margin

Let s factor operating costs into the previous scenario to calculate the operating profit margin.

How to calculate revenue from cost and margin. I m trying to understand what my projected revenue would be given my profit margin and estimated cost. Let s say i have a profit margin of 70 and expenses of 250 can i not calculate my estimated revenue. Revenue 100 profit margin. Deduct 8 500 from your total revenue and you get an operating profit of 1 500.

The formula for gross margin percentage is as follows. The net profit margin is net profit divided by revenue or net income divided by net sales. For gross profit gross margin percentage and mark up percentage see the margin calculator. Further let s say you paid an extra 500 in operating expenses on top of the costs of goods.

For example if a company has sales of 1 million and the cost of goods sold totals 750 000 the gross margin sales revenue is 250 000. Margin 100 revenue costs revenue. I m using this formula. Gross margin 100 profit revenue when expressed as a percentage.

Profit margin revenue expenses revenue. Profit revenue costs so an alternative margin formula is. The direct cost margin is calculated by taking the difference between the revenue generated by the sale of goods or services and the sum of all direct costs associated with the production of those. Calculate the net profit margin net profit and profit percentage of sales from the cost and revenue.