Professional Margin Calculator for Business Success

Understanding profit margins is crucial for any business success. Our margin calculator helps you determine the profitability of your products or services by calculating profit margins, markup percentages, and providing insights into your pricing strategy. Whether you're a retailer, wholesaler, or service provider, this tool simplifies complex financial calculations into actionable business intelligence.

A proper margin calculation ensures you maintain healthy cash flow while remaining competitive in your market. By understanding the relationship between cost, selling price, and profit, you can make informed decisions about pricing, inventory management, and business growth strategies.

How to Use the Margin Calculator

1. Enter Cost Price: Input the total cost of your product or service, including all expenses.
2. Enter Selling Price: Input the price at which you plan to sell or are currently selling the item.
3. Calculate Results: Click "Calculate Margin" to instantly see your profit margin percentage, markup percentage, and profit amount.

Frequently Asked Questions About Margin Calculation

How do I calculate margin?

To calculate margin, subtract the cost from the selling price, then divide by the selling price and multiply by 100. The formula is: Margin % = ((Selling Price - Cost) / Selling Price) × 100. For example, if you sell an item for $100 and it costs $70, your margin is 30%.

What is a 30% margin on $100?

A 30% margin on $100 means your profit is $30 and your cost is $70. This is calculated as: Cost = $100 × (1 - 0.30) = $70, and Profit = $100 - $70 = $30. The margin percentage represents the portion of the selling price that is profit.

What is the difference between margin and markup?

Margin is calculated based on the selling price, while markup is calculated based on the cost. Margin = (Selling Price - Cost) / Selling Price × 100. Markup = (Selling Price - Cost) / Cost × 100. A 50% markup equals a 33.33% margin, and a 50% margin equals a 100% markup.

Is 30% profit margin good?

A 30% profit margin is generally considered excellent across most industries. Average profit margins vary by sector: retail (2-5%), restaurants (3-7%), software (70-80%), and consulting (15-25%). A 30% margin indicates strong pricing power and efficient operations.

How to get profit margin?

To get profit margin, use this formula: Profit Margin % = (Revenue - Cost of Goods Sold) / Revenue × 100. You need to know your total revenue and total costs. For example, if you have $1000 in revenue and $700 in costs, your profit margin is 30%.