Margin Calculator

Calculate profit margins, markups, stock margin, and foreign-exchange margin.

Distinguish margin as a share of revenue from markup as a share of cost.

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Result

Revenue$133.33
Cost$100.00
Profit$33.33
Gross margin25.0000%
Markup33.3333%

How to use this calculator

Distinguish margin as a share of revenue from markup as a share of cost. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.

Calculation formula

Margin = (revenue − cost)/revenue; markup = (revenue − cost)/cost.

Assumptions and accuracy

Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.

Choose what to calculate

Profit margin calculator

Calculate gross profit margin from revenue and cost. Separate stock and currency margin modes model collateral; markup and margin use different denominators.

Related searches: Profit margin calculator from revenue and cost

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Understanding this calculation

Calculate profit margin and markup, or use separate stock/FX margin modes for collateral requirements. These meanings of margin should not be mixed.

Worked examples

Profit margin versus markup on the same sale

Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.

  1. Profit is 150 − 100 = 50. Margin divides by revenue: 50 / 150 = 33.33%. Markup divides by cost: 50 / 100 = 50%.

Gross margin: 33.33%.

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Convert a markup on cost into selling price and margin

Cost $100 and markup 25%.

  1. Profit = 100 × 25% = 25.
  2. Selling price = 100 + 25 = 125.
  3. Gross margin = 25 ÷ 125 = 20%.

Selling price is $125; markup is 25%, while gross margin is 20%.

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Common questions

What is the difference between margin and markup?

Margin divides profit by selling revenue; markup divides the same profit by cost. The percentages usually differ.

Is trading margin the same as business profit margin?

No. Trading margin refers to collateral or equity requirements; business margin expresses profit relative to revenue.

Is a 25% markup the same as a 25% profit margin?

No. At a cost of $100, a 25% markup gives a $125 selling price and $25 profit. Gross margin is $25 divided by $125, or 20%. Use Markup from Cost to price from a markup percentage; use the profit modes to solve from revenue and cost.

Scope and assumptions

Gross margin excludes unentered overhead and tax. Trading margin outputs are simplified collateral illustrations, not broker requirements or risk limits.

Sources

Calculation methods and formulas

Profit · Solve revenue

Distinguish margin as a share of revenue from markup as a share of cost.

Margin = (revenue − cost)/revenue; markup = (revenue − cost)/cost.

Profit · Solve cost

Distinguish margin as a share of revenue from markup as a share of cost.

Margin = (revenue − cost)/revenue; markup = (revenue − cost)/cost.

Profit · Solve margin

Distinguish margin as a share of revenue from markup as a share of cost.

Margin = (revenue − cost)/revenue; markup = (revenue − cost)/cost.

Profit · Solve profit

Distinguish margin as a share of revenue from markup as a share of cost.

Margin = (revenue − cost)/revenue; markup = (revenue − cost)/cost.

Stock Margin

Calculate equity required to open a margined stock position.

Required equity = share price × shares × margin requirement.

Currency Margin

Calculate margin required on a leveraged FX position.

Required margin = units × FX rate / leverage.

Markup from Cost

Calculate a selling price by adding a percentage of cost. Markup is profit divided by cost; gross margin is profit divided by selling price.

Selling price = cost × (1 + markup/100); margin = markup/(100 + markup) × 100%.

See our calculation methodology and review status for data versions, rounding and validation limitations.