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Assortment & Category Planning lesson

Margin %

Margin $ is what's left after the cost of the product. Margin % shows it as a share of sales.

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About 5–10 minutes · no sign-up needed

The idea

Margin $ is what's left after the cost of the product. Margin % shows it as a share of sales:

Formulas

Margin ÷ Sales

Key points

Margin %The share of each sale left after paying for the product.
Work it outDivide margin dollars by sales.
Read itTwo products with the same sales can earn very different amounts. Margin % shows which one keeps more.

A product can sell well and still earn little. Margin % shows how much each sale is really worth.

Practice

Try each one in your head first, then open the answer.

1. In D7, work out the Screen guard's margin %: margin ÷ sales, as a decimal (no × 100).
=C7/B7
2. What's the Fast charger's margin %?
$12,960 ÷ $28,800 × 100 = 45%
3. Tap the SKU with the highest margin %.
The screen guard keeps 70% of each sale.
4. Earbuds Pro have a 40% margin, the screen guard 70%. Which earns more margin dollars?
Earbuds Pro: $32,000 against the screen guard's $6,048

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed