36 is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost.
Margin measures the share of selling revenue left after the costs represented here.
Protecting contribution before accepting a price
Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost. A quote can meet a revenue target and still leave too little to cover delivery. Separate the selling-price denominator from the cost denominator: margin and markup answer different questions. A discount changes contribution even when the supplier cost stays fixed.
Source and result record
For wholesale margin, retain Wholesale revenue, Wholesale cost together with the output. Record the date of the source values and the unit convention used in the form. That record separates a change in the underlying case from a change in how the information was entered. A saved result without its source values cannot show which assumption produced it.
Example with the supplied inputs
Wholesale revenue: 25000; Wholesale cost: 16000. Result: 36. The values are illustrative.
Compare one changed input
Wholesale revenue changes from 25000 to 27500. The result becomes 41.8182. All other inputs remain fixed.
Calculation rule
Margin (%) = (revenue or price − modeled cost) ÷ revenue or price × 100. When EBITDA is supplied, use EBITDA ÷ revenue × 100.
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Wholesale revenue | 25000 | Use wholesale revenue on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Wholesale cost | 16000 | Use wholesale cost on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 36 is the example result. Margin measures the share of selling revenue left after the costs represented here. A 20% margin is not the same as adding 20% to cost. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Wholesale revenue, Wholesale cost. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Wholesale revenue on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 36.
Change Wholesale revenue from 25000 to 27500 while keeping every other value fixed. The result becomes 41.8182. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.