Margin Calculator

Calculate profit margin, markup, and selling price based on cost or revenue

Input Parameters

Calculation Results

Calculation Results

Profit Margin: --%

Markup: --%

Selling Price: --$

Cost Price: --$

Calculation Formula

Profit Margin = (Profit / Revenue) × 100

Markup = (Profit / Cost) × 100

Where:
Profit = Revenue - Cost
Revenue = Selling Price
Cost = Cost Price

Margin Calculator Calculator Usage Guide

Learn how to use the Margin Calculator and understand its working principles

How to Use the Margin Calculator

  1. Select the margin type you want to calculate (Profit Margin or Markup).
  2. Enter either the Cost Price or Revenue/Selling Price (but not both).
  3. Click the "Calculate" button to see the results.
  4. Use the "Reset" button to clear all inputs and start over.

Understanding Profit Margin and Markup

These are two related but different financial metrics:

  • Profit Margin measures the percentage of revenue that is profit. It is calculated as (Profit / Revenue) × 100.
  • Markup measures the percentage increase from cost to selling price. It is calculated as (Profit / Cost) × 100.

Formulas Used

These formulas help you understand the relationship between cost, revenue, profit margin, and markup:

  • Profit = Revenue - Cost
  • Revenue = Cost × (1 + Markup)
  • Cost = Revenue / (1 + Markup)
  • Profit Margin = (Profit / Revenue) × 100

Example Scenarios

Example 1: If you buy a product for $50 (cost) and want to make a 40% profit margin, what should you sell it for?

Solution: First, calculate the required profit: $50 × 40% = $20. Then, selling price = $50 + $20 = $70.

Example 2: If you buy a product for $50 (cost) and want to have a 50% markup, what should you sell it for?

Solution: First, calculate the required profit: $50 × 50% = $25. Then, selling price = $50 + $25 = $75.