# Margin Calculator

Use of Calculators*Using the item's cost and revenue, or selling price, determine the gross margin percentage, markup percentage, and gross profit of a sale. When calculating net profit, net profit margin, and profit percentage.*

** Sales Price + Revenue*

Calculations and Formulas for Margin

The gross profit P is determined by subtracting the product's production cost C from its selling price or revenue R. P = R - C

The markup percentage M is calculated by dividing the profit P by the cost C to produce the good.**(R - C) / C = M = P / C**

The profit P is divided by the selling price or revenue to determine the gross margin percentage** G. R = (R - C) / R. G = P /**

**Margin**

The term **"margin**" can mean many various things depending on the situation, such as the edge or border of something or the distance that separates one thing from another. In terms of money, margin can mean a number of different things. The first is that it can be either the ratio between a company's revenues and expenses, which is what is utilised in the first calculation, or it can be the difference between the selling price of a good or service and its cost of production. Additionally, it can refer to the percentage of an investor's equity contribution to the market value of the assets held in a margin account (connected to the second and third calculations) or the share of an interest rate on an investment.