Margin Calculator
Calculate your selling price, profit margin, and profit amount based on cost and desired margin percentage.
Selling Price
$0.00
Profit Amount
$0.00
Margin Percentage
0%
Frequently Asked Questions
What is a profit margin?
Profit margin is a financial metric used to assess a company’s profitability. It represents the percentage of revenue that exceeds the cost of goods sold. In simpler terms, it’s the percentage of the selling price that turns into profit.
How is profit margin calculated?
Profit margin is calculated by dividing the profit (selling price minus cost) by the selling price, then multiplying by 100 to get a percentage. The formula is: Margin % = ((Selling Price – Cost) / Selling Price) × 100.
What is a good profit margin?
A good profit margin varies significantly by industry. Generally, a net profit margin of 10% is considered average, 20% is considered high, and 5% is considered low. However, some industries like retail might have lower margins while software companies often have higher margins.
Can margin be more than 100%?
No, profit margin cannot exceed 100% when calculated as a percentage of the selling price. If your cost is zero, the margin would be 100%, but this is extremely rare in business as most products have some associated cost.