Vendion
    Analytics++

    Understanding Margin Calculations

    2 min read
    Categories and articles

    Margins show what remains after cost of goods. For a comparable calculation, use sales after discounts and excluding VAT, together with cost prices excluding VAT.

    CalculationFormula
    Goods cost %Cost of goods ÷ net revenue × 100
    Gross Margin %(Net revenue − cost of goods) ÷ net revenue × 100
    Margin per unit soldNet revenue per unit − cost price per unit

    With net revenue of SEK 100 and goods costing SEK 30, Goods cost is 30 percent and gross margin is 70 percent. Staff, rent and other costs have not yet been deducted.

    Check cost prices

    Open Meny → Produkter → Alla artiklar, select a product and enter Inköpspris, excluding VAT. Also check variant cost prices where used, and save the product.

    Missing cost prices affect views differently. Product mix warns and leaves the item margin unavailable; Menyanalys cannot classify it. Overview and Profitability can still sum sales with incomplete goods costs, so a high margin does not prove that all costs have been registered.

    Compare the right metrics

    Översikt, Lönsamhet, Periodjämförelse, Menyanalys and Produktmix use sales after discounts and excluding VAT for margins. Product mix’s Efter rabatt sales column includes VAT, but the margin calculation excludes it. Tab-level discounts are allocated into the product data.

    Calculations use current cost prices. A price change can affect an earlier period when viewed again. Colour indicators are the app's reference levels, not individual profitability targets.

    This feature is part of Vendion Analytics++.

    Curious how it looks in practice? Read more about the product or book a short demo.

    Read about Vendion Analytics++Book a demo

    Was this article helpful?