Channel Margin Calculator

✖The Selling Price indicates the price associated with the selling products.ⓘ Selling Price [SP]			+10% -10%
✖Cost Price refers to the cost of producing something or the price at which it is sold without making any money.ⓘ Cost Price [CP]			+10% -10%

✖The Channel Margin is a pretty easy to understand metric – basically, it’s the difference between the price a manufacturer has on its product and the price a consumer is paying for that product.ⓘ Channel Margin [CM]

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Formula

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Channel Margin

Formula

`"CM" = (("SP"-"CP")/"SP")*100`

Example

`"33.33333"=(("150"-"100")/"150")*100`

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Channel Margin Solution

STEP 0: Pre-Calculation Summary

Formula Used

Channel margin = ((Selling Price-Cost Price)/Selling Price)*100
CM = ((SP-CP)/SP)*100
This formula uses 3 Variables

Variables Used

Channel margin - The Channel Margin is a pretty easy to understand metric – basically, it’s the difference between the price a manufacturer has on its product and the price a consumer is paying for that product.
Selling Price - The Selling Price indicates the price associated with the selling products.
Cost Price - Cost Price refers to the cost of producing something or the price at which it is sold without making any money.

STEP 1: Convert Input(s) to Base Unit

Selling Price: 150 --> No Conversion Required
Cost Price: 100 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CM = ((SP-CP)/SP)*100 --> ((150-100)/150)*100

Evaluating ... ...

CM = 33.3333333333333

STEP 3: Convert Result to Output's Unit

33.3333333333333 --> No Conversion Required

FINAL ANSWER

33.3333333333333 ≈ 33.33333 <-- Channel margin

(Calculation completed in 00.004 seconds)

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Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 8 Marketing Metrics Calculators

Category Development Index

Go Category Development Index = (Total Product Category Sales in Market/Total Market Segment)*100

Channel Margin

Go Channel margin = ((Selling Price-Cost Price)/Selling Price)*100

Revenue Share of Requirements

Go Revenue Share of Requirement = Brand Purchases/Total Category Purchased by Brand Buyers

Brand Development Index

Go Brand Development Index = (Brand Sales Percentage/Total Market Segment)*100

Website Conversion Rate

Go Website Conversion Rate = (Total Goal Completion/Number of Visits)*100

Revenue Market Share

Go Revenue Market Share = (Sales Revenue/Total Market Sales Revenue)*100

Market Penetration

Go Market Penetration = (Customers/Total Population)*100

Brand Penetration

Go Brand Penetration = (Customers/Total Population)*100

Channel Margin Formula

Channel margin = ((Selling Price-Cost Price)/Selling Price)*100
CM = ((SP-CP)/SP)*100

What is Channel Margin?

The Channel Margin is a pretty easy to understand metric – basically, it’s the difference between the price a manufacturer has on its product and the price a consumer is paying for that product. Price is a big issue here because price also means profit. Therefore, in order for a certain channel to ensure its financial stability, it is motivated to increase the price. This action, obviously, affects all the distribution channels.

How to Calculate Channel Margin?

Channel Margin calculator uses Channel margin = ((Selling Price-Cost Price)/Selling Price)*100 to calculate the Channel margin, Channel Margin is defined as the difference between the price a manufacturer has on its product and the price a consumer is paying for that product. Channel margin is denoted by CM symbol.

How to calculate Channel Margin using this online calculator? To use this online calculator for Channel Margin, enter Selling Price (SP) & Cost Price (CP) and hit the calculate button. Here is how the Channel Margin calculation can be explained with given input values -> 33.33333 = ((150-100)/150)*100.

FAQ

What is Channel Margin?

Channel Margin is defined as the difference between the price a manufacturer has on its product and the price a consumer is paying for that product and is represented as CM = ((SP-CP)/SP)*100 or Channel margin = ((Selling Price-Cost Price)/Selling Price)*100. The Selling Price indicates the price associated with the selling products & Cost Price refers to the cost of producing something or the price at which it is sold without making any money.

How to calculate Channel Margin?

Channel Margin is defined as the difference between the price a manufacturer has on its product and the price a consumer is paying for that product is calculated using Channel margin = ((Selling Price-Cost Price)/Selling Price)*100. To calculate Channel Margin, you need Selling Price (SP) & Cost Price (CP). With our tool, you need to enter the respective value for Selling Price & Cost Price and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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