Margin Calculator
Calculate Margin step by step: Margin % = (price − cost) ÷ price × 100.
In short
Formula: Margin % = (price − cost) ÷ price × 100.
What this calculator does
Calculate Margin step by step: Margin % = (price − cost) ÷ price × 100. Worked example, questions and limitations included.
Use it to turn Currency (symbol only, never converted), Selling price or revenue, Cost into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this accounting & costing calculation.
Inputs and what they mean
- Currency (symbol only, never converted)
- — choice value.
- Selling price or revenue
- — number value.
- Cost
- — number value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
Margin is always measured against price or revenue.
Markup is profit as a share of cost: (price − cost) ÷ cost. Margin is profit as a share of price: (price − cost) ÷ price. The same sale always has a higher markup than margin — 50% markup is only 33.33% margin.
Enter COGS as cost for gross margin, or all costs for net margin.
Margin % = (price − cost) ÷ price × 100.
Inputs used: Currency (symbol only, never converted), Selling price or revenue, Cost.
Worked example
$90 price, $60 cost
- Profit = $30.
- 30 ÷ 90 = 33.33% margin (50% markup).
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
- Before tax unless you include tax in cost.
- No benchmarks built in.
- Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
- The result depends on the values you enter for this margin calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.
Common questions
Gross, operating or net margin?
It depends on which costs you enter: COGS for gross, plus operating costs for operating, plus interest and tax for net. Check the formula, example, and limitations on this page before using the result for a real accounting & costing decision.
Why is margin lower than markup?
Because price is always bigger than cost, so the same profit is a smaller share of it. Check the formula, example, and limitations on this page before using the result for a real accounting & costing decision.
How do I hit a target margin?
Use the target margin pricing calculator. Check the formula, example, and limitations on this page before using the result for a real accounting & costing decision.
How do I use the Margin Calculator?
Enter the required values for Currency (symbol only, never converted), Selling price or revenue, Cost. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.
What formula does the Margin Calculator use?
Margin % = (price − cost) ÷ price × 100. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.
Can the Margin Calculator be used for exact decisions?
Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.
Related tools
Calculate COGS step by step: COGS = beginning inventory + purchases − ending inventory.
Calculate Gross Profit step by step: Gross profit = net revenue − cost of goods sold.
Calculate Gross Margin step by step: Gross margin % = (net revenue − COGS) ÷ net revenue × 100.
Calculate Contribution Margin Ratio step by step: Contribution margin ratio = (sales − variable costs) ÷ sales × 100.
Calculate Break-Even Revenue step by step: Break-even revenue = fixed costs ÷ contribution margin ratio.
Calculate Target Profit step by step: Target units = (fixed costs + target profit) ÷ (price − variable cost per unit), rounded up to a whole unit.