Free tool · no login
Profit margin calculator for telehealth
Enter price and total cost to get gross profit, profit margin and markup, or enter cost and a target margin to get the price you need.
Profit margin
Enter your numbers to see the result.
Free tool by Telehealth Media · telehealthmedia.com
How it works
Profit margin is the share of the price you keep after costs. Markup is the same profit as a share of cost, which is why markup is always the bigger number.
- Gross profit = price - cost
- Profit margin = gross profit / price x 100
- Markup = gross profit / cost x 100
- Price for a target margin = cost / (1 - target margin)
For a telehealth order, cost should include medication, the consult, the pharmacy fee, shipping and payment processing. Leaving the consult out is the most common reason margins look better on paper than in the bank.
Worked example
A first month is priced at 199 USD and costs 88 USD to deliver.
| Step | Calculation | Result |
|---|---|---|
| Gross profit | 199 - 88 | 111 USD |
| Profit margin | 111 / 199 x 100 | 55.8% |
| Markup | 111 / 88 x 100 | 126.1% |
These numbers illustrate the formula; enter your own.
Telehealth notes
- Gross margin here is before ad spend. Subtract acquisition cost per patient to see what each patient actually earns.
- Refill orders often skip the consult, so their margin can be higher than the first order. Work out each separately.
- Discounted first months lower margin on the order that has to pay for the ad. Check break-even ROAS when you test a discount.
Questions
How do you calculate profit margin?
Subtract cost from price, divide by price and multiply by 100.
What is the difference between margin and markup?
Margin divides profit by price; markup divides profit by cost. A 50 percent margin is a 100 percent markup.
How do I price for a target margin?
Divide cost by one minus the target margin. Switch the calculator to "Price for a target margin" to do it for you.
Are my numbers stored?
No. The calculation runs in your browser and nothing is sent to us.