Calculate bakery profit margin
Margin = (selling price − cost) ÷ selling price × 100
If a batch costs 60 and sells for 100, the difference is 40 and the margin is 40%. That same batch has a 66.67% markup because 40 ÷ 60 = 0.6667.
Calculate the price for a target margin
Selling price = cost ÷ (1 − target margin ÷ 100)
A target of 100% is not valid when costs are positive: dividing by zero does not produce a usable selling price. A selling price below cost produces a negative margin. Markup is undefined when cost is zero.
Does this show net business profit?
Only the costs you enter are included. If labor, rent, utilities, fees or other costs are absent, the remaining amount does not represent net business profit. OvenMelt is a costing and planning tool, not accounting software.