Profit Margin Calculator

Calculate the profit margin of making, trading products, or doing business in general. Please provide any two of the following to calculate the rest values.

Calculation Results

Margin
25.00%
Profit
$40.00
Markup
33.33%
Revenue
$160.00

Profit vs. Cost Breakdown

Profit Margin Details

Key Definitions

  • Cost: The cost of the product.
  • Revenue: The income generated by selling the product.
  • Profit: The money left after deducting cost from revenue.
  • Margin: The percentage of profit vs. revenue.
  • Markup: The percentage of profit vs. cost.
Key Formulas
Profit = Revenue - Cost
Margin = (Profit / Revenue) × 100%
Markup = (Profit / Cost) × 100%
Revenue = Cost × (1 + Markup/100)
Pro Tip

To improve profit margin, focus on decreasing costs or increasing selling prices. Even a small margin improvement can significantly impact overall profitability.

Stock Trading Margin Calculator

Calculate the required amount or maintenance margin needed for investors to make securities purchase on margin.

Stock Margin Results

Amount Required
$2,500.00
Total Position Value
$5,000.00
Amount Borrowed
$2,500.00
Maintenance Margin (25%)
$1,250.00

Margin Breakdown Visualization

Stock Trading Margin Details

How Margin Trading Works

Margin trading allows investors to borrow funds from brokers to trade financial assets. Federal regulations typically allow borrowing up to 50% of the total purchase (initial margin requirement), with a maintenance margin requirement of at least 25%.

Key Formula
Amount Required = (Stock Price × Number of Shares) × (Margin Requirement / 100)
Risk Warning

Margin trading amplifies both gains AND losses. A 10% price drop with 50% margin means a 20% loss on your equity. Always have a risk management strategy when trading on margin.

Currency Exchange Margin Calculator

Calculate the minimum amount to maintain in the margin account to make currency trading.

Forex Margin Results

Amount Required
$12.20
Total Position Value
$1,220.00
Leverage Ratio
100:1
Margin Percentage
1%

Currency Position Visualization

Currency Exchange Margin Details

Understanding Forex Margin

In forex trading, margin is a good faith deposit required to maintain open positions. It's not a fee but a portion of account equity allocated as a margin deposit.

Key Formula
Amount Required = (Exchange Rate × Units) × Margin Ratio

Common Leverage Ratios

  • 1:50 (2% margin): Trade $10,000 with $200 deposit
  • 1:100 (1% margin): Trade $10,000 with $100 deposit
  • 1:200 (0.5% margin): Trade $10,000 with $50 deposit
Margin Calls

If losses reduce your account below maintenance margin, you'll receive a margin call. You must deposit funds or positions will be automatically closed to prevent negative balance.