Brand rate definition and online calculation tool

Calculate brand rate from sales margin and sales price

Enter your sales margin

Enter your selling price

Calculate brand rate from purchase price/cost and selling price

Enter your selling price

Enter your purchase price / cost price

Calculate brand rate from sales margin and purchase price

Enter your sales margin

Enter your purchase price

What is the brand rate? Definition

The brand rate measures the percentage of sales margin in the selling price of a company’s product or service . Brand rate is an essential measure for businesses, as it shows whether or not the company’s sales are profitable. A high brand rate means you can spend more in other areas of your business, because the sale is profitable. On the other hand, a negative brand rate indicates that your product is not profitable. Consequently, you need to stop selling or reduce the costs involved. Brand price can be used to set the selling price of the product. These are costs to be taken into account when negotiating margins. Really useful in B2B. Find other commercial calculations on this page.

What is a good brand rate?

A good brand rate will vary from industry to industry. Taking into account normal expenses for a company, a good brand rate can be considered to be above 20%.

If the mark rate is over 80%, it’s excellent.

Brand rate formulas

You can calculate your brand rate in 3 different ways.

With sales margin and sales price :

( Sales margin X 100 ) / ( Sales price )

With sales margin and purchase price:

( Sales margin X 100 ) / ( Purchase price + Sales margin )

With selling price and purchase price:

(( Sales price – Purchase price ) X 100) / Sales price

Example of brand rate

Let’s say you’re a company that sells computers.

You buy your computers for 1000 euros.

You sell them for 1,200 euros.

Your sales margin is 200 euros.

We want to calculate the brand rate: