CalKit

Margin Calculator

Calculate cost, selling price, and profit margin.

원
%
판매가
14,286원
원가10,000원
판매가14,286원
이익4,286원
마진율 (판매가 기준)30.0%
마크업 (원가 기준)42.9%

Overview

The Margin Calculator determines the profit margin based on selling price and cost. Profit margin is the percentage of revenue remaining after subtracting cost, a key metric for evaluating business profitability. It is widely used in retail, wholesale, and e-commerce for pricing strategy and profit analysis.

Formula

Margin (%) = ((Selling Price − Cost) ÷ Selling Price) × 100
Profit = Selling Price − Cost

How to Use

  1. 1Enter the cost (purchase price).
  2. 2Enter the selling price (retail price).
  3. 3Click 'Calculate' to see margin percentage and profit amount.
  4. 4Optionally enter a target margin to reverse-calculate the required selling price.

Tips

  • ✔Do not confuse margin with markup. Margin is based on selling price; markup is based on cost.
  • ✔Compare your margin to industry averages to assess competitiveness.
  • ✔Include all ancillary costs (shipping, packaging) in your cost for accuracy.
  • ✔Be clear whether prices are inclusive or exclusive of tax.
  • ✔Compare total profit between low-margin high-volume and high-margin low-volume strategies.

FAQ

Q. What is the difference between margin and markup?

Margin is the profit as a percentage of selling price, while markup is the profit as a percentage of cost. For example, if cost is $100 and selling price is $150, margin is 33.3% and markup is 50%.

Q. What is the difference between gross margin and net margin?

Gross margin subtracts only the cost of goods sold from revenue, while net margin subtracts all expenses including operating costs and taxes.

Q. Is a higher margin always better?

Not necessarily. A high margin with low sales volume may yield less total profit than a moderate margin with high volume. Evaluate margin alongside turnover and total profit.

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