What is the difference between margin and markup?

Margin divides the profit by the selling price, markup divides it by the cost. A 50 percent markup (30 cost, 45 price) is only a 33 percent margin.

How is the annualised ROI calculated?

It converts the total return into a yearly rate: (1 + ROI/100)^(1/years) - 1. With an ROI of 50 percent over three years that is about 14.5 percent per year.

Does the profit tab include taxes?

No. Profit is revenue minus variable costs minus the fixed costs you enter. Taxes, depreciation and financing costs are not part of it.

Is the cash flow tab the same as profit?

No. Profit looks at costs in the period, cash flow only looks at money actually moving in and out. A profitable month can still have a negative cash flow.

Are the formulas shown anywhere?

Yes. Each tab prints the formula with your own numbers inserted, so you can verify every result by hand.

Business Calculator

Seven business ratios in one tool: margin, markup, contribution margin, ROI, profit, return on sales and cash flow — each with its inputs, result and the formula with your numbers.

Cost per unit

Selling price per unit

Gross margin—

Markup on cost—

Profit per unit—

—

Every tab is a single formula applied to the numbers you type: margin = (price - cost) / price, markup = (price - cost) / cost, contribution margin = price - variable cost, ROI = (return - investment) / investment, profit = revenue - variable costs - fixed costs, return on sales = profit / revenue, cash flow = cash in - cash out. Each tab shows the formula with your own numbers filled in.

Seven Business Ratios in One Tool

This business calculator collects the seven ratios that come up most often in day-to-day pricing and controlling work, each in its own tab. Margin and markup turn a cost and a price into a percentage; the contribution margin tab shows how much each unit contributes towards fixed costs; ROI compares your return with the investment, including an annualised figure and the payback period; profit subtracts variable and fixed costs from revenue; return on sales expresses profit as a share of revenue; and cash flow offsets cash in against cash out for the period. Every tab shows its own formula with your numbers filled in, so you can see exactly what was calculated and check it by hand. All figures are plain numbers you type — no exchange rates, no tax rules, no assumptions about your industry are applied.

Business Calculator

Seven Business Ratios in One Tool

Sieben Kennzahlen in einem Rechner

More free tools