Quick answer: The core business formulas are gross margin = (revenue − COGS) ÷ revenue, markup = (price − cost) ÷ cost, COGM = total manufacturing cost + beginning WIP − ending WIP, and employee turnover = separations ÷ average headcount. The tools below calculate each one with your numbers and show every step.
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Business formulas at a glance
| Metric | Formula | Example |
|---|---|---|
| Gross margin | (revenue − COGS) ÷ revenue × 100 | ($100 − $60) ÷ $100 = 40% |
| Markup | (price − cost) ÷ cost × 100 | ($100 − $60) ÷ $60 = 66.67% |
| COGS | beginning inventory + purchases − ending inventory | $20k + $50k − $15k = $55k |
| Total manufacturing cost | direct materials + direct labor + overhead | $40k + $30k + $20k = $90k |
| COGM | total manufacturing cost + beginning WIP − ending WIP | $90k + $10k − $12k = $88k |
| Employee turnover | separations ÷ average headcount × 100 | 18 ÷ 200 = 9% |
| Unemployment rate | unemployed ÷ labor force × 100 | 7,000 ÷ 170,000 = 4.12% |
| Labor force participation | labor force ÷ civilian population 16+ × 100 | 170,000 ÷ 270,000 = 62.96% |
| Engagement rate | engagements ÷ followers (or reach) × 100 | 450 ÷ 12,000 = 3.75% |
How manufacturing costs flow
- Total manufacturing cost adds everything put into production this period: direct materials, direct labor and manufacturing overhead.
- COGM adjusts for work in process: add the partly finished goods you started with and subtract those still unfinished at the end.
- COGS adjusts for finished goods: beginning finished goods + COGM − ending finished goods.
- Gross profit is revenue minus COGS, and gross margin expresses it as a share of revenue.
Each step has its own calculator and guide, so you can follow one number from the factory floor to the income statement.
Which tool do you need?
| Question | Use |
|---|---|
| What margin or markup does this price give me? | Gross Margin Calculator |
| What did it cost to make what we finished this period? | COGM Calculator |
| What did we spend on production this period? | Total Manufacturing Cost |
| How fast are people leaving? | Employee Turnover Rate |
| How do BLS labor figures work? | Unemployment Rate and Participation Rate |
| Is a social post performing? | Engagement Rate Calculator |
| What should a pet sitting visit cost? | Pet Sitting Rate Calculator |
Glossary
| Term | Meaning |
|---|---|
| COGS | Cost of goods sold: the direct cost of the products sold in the period. |
| COGM | Cost of goods manufactured: the cost of products finished in the period. |
| WIP | Work in process: partly finished goods. |
| Manufacturing overhead | Indirect factory costs such as utilities, depreciation and supervision. |
| Separation | Any employee leaving the organization, voluntary or not. |
| Labor force | People employed plus people unemployed and actively looking for work. |
Guides that explain the maths
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of price, markup is profit as a share of cost. A $60 item sold for $100 has a 40% margin and a 66.67% markup.
How is COGM different from COGS?
COGM is the cost of goods finished in a period. COGS is the cost of goods sold, which adjusts COGM for changes in finished goods inventory.
What is total manufacturing cost?
Direct materials plus direct labor plus manufacturing overhead used in production during the period.
How do I calculate employee turnover?
Divide separations by average headcount and multiply by 100.
How is the unemployment rate calculated?
Unemployed people divided by the labor force, times 100, following the BLS definition.
Are these business calculators free?
Yes, all of them, with no account needed.
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