The contribution margin formula is used to calculate contribution margin. Contribution margin is the difference between the revenue and the variable costs of a business.
This average gross margin calculator will help you to estimate the weighted average gross margin for a business. Normally a business will have a number of product lines and know the gross margin on each, to calculate the average gross margin for the business it is necessary to weight each product margin by its corresponding revenue.
The Excel sheet, available for download below, helps a business convert from margin to markup or from markup to margin, and also calculates the cost multiplier which can be used to apply to a cost price to calculate the corresponding selling price.
It is often useful to be able to convert between markup and margin and to calculate the selling price, cost price and profit of a product in different circumstances.
The Excel sheet, available for download below, helps a business calculate selling price, cost price, profit, markup, margin, and cost multiplier by knowing and inserting two of the values.