Profit rate calculator
Profit dollars as a share of sales dollars.
Formula
Profit rate % = (profit dollars ÷ sales dollars) × 100
Runs in your browser. Nothing is sent anywhere.
Profit rate
14.0%
profit rate
Worked example
$168,000 of profit on $1,200,000 of sales is a 14.0% profit rate. Run the same arithmetic per retail account and accounts that looked identical on revenue usually separate by several points.
When you reach for this
Works at any altitude — a SKU, a retail account, a channel. Most useful when you run the same calculation per account and find out which relationships pay.
How to read the number
Run it per retail account with deductions and distribution costs included. Accounts that look identical on revenue frequently diverge by several points once you allocate compliance costs to the accounts causing them.
Metrics that travel with it
Questions operators ask about this metric
How does profit rate differ from gross margin?
Gross margin stops at cost of goods. Profit rate carries whatever else you allocate — distribution, deductions, chargebacks — which is what makes it worth running per account.
What should I allocate to each account?
Everything that account causes: its compliance costs, its expedited freight, its returns. Spreading overhead evenly across accounts hides the expensive ones.
At what level should I run it?
Per account first, per channel second, per SKU once you have the cost detail. Company-level profit rate is a reporting number rather than a decision number.
Why do two accounts with equal revenue diverge?
Usually chargebacks and freight. One retailer’s routing guide simply costs more to comply with, and the difference only appears once you allocate those costs to the account causing them.
Stop calculating this by hand
Every number on this page comes out of data you already have — orders, shipments, inventory, deductions. Endless keeps those in one source of truth instead of four exports, so the metric updates on its own and agents watch it for you.