Margin Calculator
Calculate profit margins from cost and selling price. Essential for pricing, profitability analysis, and business planning.
Margin Formulas
| Type | Formula |
|---|
| Gross Margin % | ((Revenue - COGS) / Revenue) × 100 |
| Net Margin % | (Net Profit / Revenue) × 100 |
| Markup % | ((Price - Cost) / Cost) × 100 |
Margin vs Markup
| Cost | Selling Price | Margin | Markup |
|---|
| $50 | $100 | 50% | 100% |
| $70 | $100 | 30% | 43% |
| $80 | $100 | 20% | 25% |
| $60 | $100 | 40% | 67% |
Implementation
``javascript
function calculateMargin(cost, sellingPrice) {
const profit = sellingPrice - cost;
const margin = (profit / sellingPrice) * 100;
const markup = (profit / cost) * 100;
return { profit, margin, markup };
}
``
Industry Average Margins
| Industry | Typical Margin |
|---|
| Grocery | 2-3% |
| Retail | 3-5% |
| Software | 70-90% |
| Restaurants | 3-9% |
| Manufacturing | 5-10% |