Margin Calculator

* Revenue = Selling Price

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Margin Calculations:

The basic calculation for this calculator finds the profit margin from the cost and selling price by the formula (Gross Profit = Selling Price - Cost).

Margin Formulas:

• The gross profit P is the difference between the cost to make a product C and the selling price or revenue R.
  • P = R - C
• The mark up percentage M is the profit P divided by the cost C to make the product.
  • M = P / C = ( R - C ) / C
• The gross margin percentage G is the profit P divided by the selling price or revenue R.
  • G = P / R = ( R - C ) / R

References

See also Mathworld on Marginal Analysis