A margin calculator is a tool that can be used to calculate the margin percentage, markup percentage, and profit of a product or service. Margin is the difference between the cost price and the selling price of a product or service, expressed as a percentage of the selling price. Markup is the amount added to the cost price of a product or service, also expressed as a percentage of the cost price.
To use a margin calculator, you need to input the cost price and the selling price of the product or service. The calculator will then calculate the margin percentage, markup percentage, and profit based on the input data.
- The cost price of a product is $100, and the selling price is $150.
- Using a margin calculator, the margin percentage is calculated as 33.33% (selling price minus cost price minus selling price).
- The markup percentage is calculated as 50% of the selling price minus the cost price.
- The profit is calculated as $50 (selling price minus cost price).
There are many online margin calculators available on the internet, which you can use to perform these calculations. Some of the calculators also allow you to input multiple items and calculate the total margin, markup, and profit for the purchase.
CEO / Co-Founder