🧮 Essential Tool for Online Business: Margin Calculator 💰
A margin calculator is essential for accurate profit analysis and pricing in various businesses such as online shopping malls, wholesale, and retail. 🚀
🟦 Margin Calculator Features
This margin calculator calculates net profit and margin rate using the following elements:
✅ **Cost (Purchase Price)** → The base purchase amount for the product
✅ **Purchase Shipping Fee** → The shipping fee paid during purchase
✅ **Packaging Fee** → Cost of packaging materials
✅ **Other Costs** → Additional costs (e.g., advertising fees, labor costs, etc.)
✅ **Marketplace Fee** → Fees charged by marketplace platforms like Coupang, Naver Smart Store, etc.
✅ **Selling Price** → The final price charged to the customer
✅ **Customer Shipping Fee** → Shipping fee paid by the customer
📋 Calculation Formula
The margin calculation formula is as follows:
🔹 **VAT Calculation**
VAT = Pre-tax Margin Amount / 11
= (Total Sales ÷ 1.1) - (Total Purchase Amount ÷ 1.1)
🔹 Net Margin Formula
Margin = Selling Price - (Cost + Purchase Shipping Fee + Packaging Fee + Other Costs + Marketplace Fee)
🔹 Margin Rate Formula
Margin Rate (%) = (Margin Amount ÷ Selling Price) × 100
🔎 Example Usage
📦 Product Details
**Cost (Purchase Price):** 10,000 KRW
**Purchase Shipping Fee:** 2,000 KRW
**Packaging Fee:** 500 KRW
**Other Costs:** 1,000 KRW
**Marketplace Fee:** 10%
**Selling Price:** 20,000 KRW
**Customer Shipping Fee:** Free
📊 Calculation Process
1️⃣ **Total Costs:**
10,000 KRW (Cost) + 2,000 KRW (Purchase Shipping Fee) + 500 KRW (Packaging Fee) + 1,000 KRW (Other Costs) = 13,500 KRW
2️⃣ **Marketplace Fee:**
Selling Price (20,000 KRW) × 10% = 2,000 KRW
3️⃣ **Final Margin:**
Selling Price (20,000 KRW) - Total Costs (13,500 KRW) - Marketplace Fee (2,000 KRW) = 4,500 KRW
4️⃣ **Margin Rate:**
(4,500 KRW ÷ 20,000 KRW) × 100 = 22.5%
💡 Margin Calculator Tips
✔️ Be sure to distinguish between VAT-inclusive and VAT-exclusive amounts.
✔️ When offering free shipping promotions, always check your expected margin.
✔️ Marketplace fees are calculated based on the selling price, so enter this accurately.
🚀 Start running your online business smartly and avoid losses with this margin calculator! 🔥