Enter the total sales per item ($) and the cost per item ($) into the Profit Margin on Sales Calculator. The calculator will evaluate and display the Profit Margin on Sales.

## Profit Margin on Sales Formula

The following formula is used to calculate the Profit Margin on Sales.

PMoS = (S-C) / (S) * 100 = (%)

• Where PMoS is the Profit Margin on Sales (%)
• S is the total sales per item ($) • C is the cost per item ($)

## How to Calculate Profit Margin on Sales?

The following example problems outline how to calculate Profit Margin on Sales.

Example Problem #1:

1. First, determine the total sales per item ($). 1. The total sales per item ($) is given as: 25.
2. Next, determine the cost per item ($). 1. The cost per item ($) is provided as: 5.
3. Finally, calculate the Profit Margin on Sales using the equation above:

PMoS = (S-C) / (S) * 100 = (%)

The values given above are inserted into the equation below:

PMoS = (25-5) / (25) * 100 = 80 (%)

Example Problem #2:

For this problem, the variables needed are provided below:

total sales per item ($) = 70 cost per item ($) = 5

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

PMoS = (S-C) / (S) * 100 = ?