Enter the average product profit ($) and the average product COGS ($) into the Product Margin Calculator. The calculator will evaluate and display the Product Margin.
Product Margin Formula
The following formula is used to calculate the Product Margin.
PDM = APP / APC * 100
- Where PDM is the Product Margin (%)
- APP is the average product profit ($)
- APC is the average product COGS ($)
How to Calculate Product Margin?
The following example problems outline how to calculate Product Margin.
Example Problem #1:
- First, determine the average product profit ($).
- The average product profit ($) is given as: 75.
- Next, determine the average product COGS ($).
- The average product COGS ($) is provided as: 150.
- Finally, calculate the Product Margin using the equation above:
PDM = APP / APC * 100
The values given above are inserted into the equation below and the solution is calculated:
PDM = 75 / 150 * 100 = 50 (%)
Example Problem #2:
For this problem, the variables required are provided below:
average product profit ($) = 80
average product COGS ($) = 160
Test your knowledge using the equation and check your answer with the calculator above.
PDM = APP / APC * 100 = ?