Product Margin Calculator
Enter your list price, cost of goods, and trade terms to see gross margin, invoice price, front margin, back margin, net revenue, pocket price, and pocket margin — all computed instantly in your browser.
Inputs
Results
Waterfall Breakdown
| Line item | EUR | % of List |
|---|
How the formulas work
Invoice Price
The price after on-invoice deductions: Invoice Price = List Price × (1 − Trade Discount%) × (1 − Promo Discount%). This is what appears on the sales invoice to the retailer.
Gross Margin
The difference between invoice price and cost of goods: Gross Margin = Invoice Price − COGS. Expressed as a percentage of the invoice price: Gross Margin % = Gross Margin / Invoice Price × 100.
Front Margin (On-Invoice Deductions)
The total value deducted on the invoice before it reaches the supplier: Front Margin = List Price − Invoice Price. This captures trade and promo discounts.
Back Margin (Off-Invoice Deductions)
Post-invoice costs the supplier bears: Back Margin = (Invoice Price × Annual Rebate%) + Listing Fee + Marketing Contribution + Freight + Financing Cost. Financing cost = Invoice Price × (Payment Days / 365) × Cost of Capital%.
Net Revenue
Net Revenue = Invoice Price − Back Margin Deductions. This is the cash the supplier actually retains.
Pocket Price & Pocket Margin
Pocket Price = Net Revenue (the true amount retained per unit). Pocket Margin = Pocket Price − COGS. Percentage: Pocket Margin % = Pocket Margin / List Price × 100.