1. Gross Profit
Definition:
The total profit earned after deducting unit costs from sales, excluding VAT.
Formula:
Gross Profit=Sales (excl. VAT)−(Units Sold×Unit Cost)
Example:
Sales = 140 SEK
Units Sold = 17
Unit Cost = 3.62 SEK
GrossProfit=140−(17×3.62)=51.38 SEK
2. Units Sold
Definition:
The number of product units sold during the selected period.
Formula:
Units Sold=∑(Quantity of items sold)
3. Sales
Definition:
Total revenue generated from units sold, excluding VAT.
Formula:
Sales=Units Sold×Price (excl. VAT)
Note: If prices in the system include VAT, the system automatically removes VAT based on the VAT rate.
4. Unit Cost
Definition:
The purchase or production cost of a single unit of the product.
Formula:
Unit Cost= Total Cost of Goods / Number of Units
5. Unit Margin %
Definition:
The profit margin per unit, expressed as a percentage of the selling price (excl. VAT).
Formula:
Unit Margin %= (Price (excl. VAT)−Unit Cost) / Price (excl. VAT) ×100
Example:
Price (excl. VAT) = 8.00 SEK
Unit Cost = 3.48 SEK
UnitMargin%= (8.00−3.48) / 8.00×100=56.5%
6. Unit Margin
Definition:
The absolute profit made per unit sold, excluding VAT.
Formula:
Unit Margin=Price (excl. VAT)−Unit Cost
Example:
8.00 SEK – 3.48 SEK = 4.52 SEK
7. Gross Margin %
Definition:
The profitability ratio of total sales, after accounting for total costs.
Formula:
Gross Margin %= Gross Profit / Sales (excl. VAT) ×100
Example:
Gross Profit = 58.96 SEK
Sales = 176 SEK
GrossMargin%=58.96×100 / 176 =33.5%
📘 Notes
VAT Handling: All metrics are calculated on VAT-excluded values.
Consistency: If VAT rates differ across products, ensure you always compare sales values net of VAT.
Usage Tip:
Use Unit Margin % for product-level profitability.
Use Gross Margin % for overall sales profitability.