Enter the total sales ($) and the total costs associated with sales ($) into the Sales Margin Calculator. The calculator will evaluate and display the Sales Margin.
Sales Margin Formula
The following formula is used to calculate the Sales Margin.
SM = (TS-TCS) / TS * 100
- Where SM is the Sales Margin (%)
- TS is the total sales ($)
- TCS is the total costs associated with sales ($)
How to Calculate Sales Margin?
The following example problems outline how to calculate Sales Margin.
Example Problem #1:
- First, determine the total sales ($).
- The total sales ($) is given as: 680.
- Next, determine the total costs associated with sales ($).
- The total costs associated with sales ($) is provided as: 300.
- Finally, calculate the Sales Margin using the equation above:
SM = (TS-TCS) / TS * 100
The values given above are inserted into the equation below and the solution is calculated:
SM = (680-300) / 680 * 100 = 55.88 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total sales ($) = 700
total costs associated with sales ($) = 400
Test your knowledge using the equation and check your answer with the calculator above.
SM = (TS-TCS) / TS * 100 = ?
