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:

1. First, determine the average product profit ($). • The average product profit ($) is given as: 75.
2. Next, determine the average product COGS ($). • The average product COGS ($) is provided as: 150.
3. 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