Formula Used in Plannit
( Selling Price – Cost ) ÷ Selling Price
This percentage represents the portion of the selling price that your business actually keeps.
Example
Cost: $236.24
Selling Price: $318.92
🔹 Calculate profit in dollars
$318.92 – $236.24 = $82.68
You keep $82.68.
🔹 Calculate profit percentage
$82.68 ÷ $318.92 = 26%
Plannit will therefore display 26%.
Important to Know
If you apply a 35% markup on cost, the profit shown will not be 35%.
Why?
Markup is calculated on the cost
Profit margin is calculated on the selling price
These are two different methods.
Quick Summary
Plannit displays the true profit margin
The calculation is based on the selling price
This method follows standard accounting practice