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

Test your knowledge using the equation and check your answer with the calculator above.

PDM = APP / APC * 100 = ?