Analyze your pricing efficiency and profitability.
Formula: ((Revenue - COGS) / Revenue) x 100
The Gross Profit Margin is a core financial metric that indicates the health of your business. It measures how much money you keep from every Rupee of sales after paying for the direct costs of your products (COGS).
Margin vs. Markup: What's the difference?
Many new business owners in Nepal confuse these two:
Margin: Is calculated based on the Selling Price. (Profit / Revenue)
Markup: Is calculated based on the Cost Price. (Profit / Cost)
Example: If you buy a product for Rs. 100 and sell it for Rs. 150, your Markup is 50%, but your Gross Margin is only 33.33%.
Why use this calculator?
Using this tool helps you ensure that your pricing covers not just your COGS, but also your operating expenses like rent, marketing, and taxes. For accurate tax planning, you should also use our Nepal VAT Calculator to factor in the 13% tax impact on your final retail price.
