AI Product Economics
Calculate gross margin and markup percentages, or set prices from desired margin targets. Two modes for flexible pricing.
Revenue / Price
$100.00
Cost
$60.00
Profit
$40.00
Gross Margin %
40.00%
Markup %
66.67%
Cost plus profit explains the full selling price or revenue target.
Key metrics
Contract, discovery endpoints, and developer notes for agent use.
Always available for agents
Tool contract JSON
https://aibizhub.io/contracts/profit-margin-calculator.jsonStable input and output contract for this exact tool.
Human review
People can use the browser page to sense-check outputs and charts, but agents should still execute against the contract and discovery endpoints.
{
"tool": "profit_margin",
"revenue": 100000,
"cost_of_goods": 60000,
"operating_expenses": 25000
} No. Start with /agent-tools.json, then follow the tool's contract URL. The page UI is for human review, not parameter discovery.
Every tool opens in Quick Start first. Advanced Controls keeps the same scenario, reveals more assumptions or diagnostics, and every tool keeps AI integrations inline below the instructions.
Open it when a human wants to sense-check the output, review the chart, or keep exploring related tools after the calculation finishes.
Gross Margin % = (Revenue - Cost) / Revenue × 100. Markup % = (Revenue - Cost) / Cost × 100. Markup is always higher than margin. A 50% margin ≈ 100% markup.
Use this when you know your cost and target margin (e.g., 'I want a 40% margin on this product'). It calculates the required price.
Yes. Cost includes labor, materials, and allocated overhead. Revenue is what you charge customers.
It varies by industry. Retail often targets 20-40%, software 60-80%, services 30-50%. Competitive and cost pressures drive your floor.
Yes. AI Biz Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.
No. Outputs are business planning estimates — not legal, tax, or accounting advice.
Related Resources
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