Business Finance

Margin
Calculator

Calculate profit margin, markup, stock trading margin, and currency exchange margin — with live gauge and industry benchmarks.

3
Calculators
Profit Margin
Markup %
Profit Margin Calculator
Solve for:
Profit Margin %
Markup %
Revenue
Cost
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$
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📊 Profit Margin Health
0% Poor10%20%30%40%+ Excellent
Industry Benchmarks
💰 Revenue Split
📊 Margin vs Markup Comparison
Stock Trading Margin Calculator
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📊 Trade Capital Breakdown
Currency Exchange Margin Calculator
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💱 Position vs Required Margin
🏭 Typical Profit Margins by Industry
💻
SaaS / Software
70 – 80%
💊
Pharmaceuticals
15 – 20%
🏦
Financial Services
15 – 25%
🏥
Healthcare
5 – 10%
🏭
Manufacturing
5 – 10%
🛒
Retail
2 – 5%
🍽️
Restaurants
3 – 9%
🏗️
Construction
2 – 6%
🚚
Logistics
3 – 7%
🎓
Education
5 – 12%

Understanding Profit Margin

Profit margin is one of the most important metrics in business finance. It tells you what percentage of revenue remains as profit after deducting costs. A higher margin means the business is more efficient at converting revenue into actual profit.

Margin vs Markup — The Key Difference

Profit Margin = (Revenue − Cost) / Revenue × 100 Markup % = (Revenue − Cost) / Cost × 100 Profit Amount = Revenue − Cost

Margin and markup are related but measure different things. A product that costs $100 and sells for $150 has a 33.3% margin but a 50% markup. Confusing them is a common business mistake — always clarify which metric you're using.

Gross vs Net vs Operating Margin

Gross margin only deducts cost of goods sold (COGS). Operating margin also deducts operating expenses like rent and salaries. Net margin deducts everything including taxes and interest — it's the most complete picture of profitability. This calculator focuses on gross margin.

Stock Trading Margin

When you trade on margin, you borrow money from your broker to buy more securities than your cash alone would allow. The initial margin requirement (commonly 50% in the US under Regulation T) is the minimum you must put up. The maintenance margin (typically 25%) is the minimum equity you must maintain — falling below this triggers a margin call, requiring you to deposit more funds or sell positions.

Frequently Asked Questions

What is a good profit margin for a small business?
It depends heavily on the industry. For retail, 5% is reasonable. For service businesses or consulting, 15-20%+ is achievable. SaaS companies often exceed 70%. The key is to compare your margin to industry peers rather than a universal number.
How do I convert markup to margin?
Margin = Markup / (1 + Markup). Example: 50% markup = 50 / 150 = 33.3% margin. Conversely, Markup = Margin / (1 − Margin). So 33.3% margin = 0.333 / 0.667 = 50% markup.
What is a margin call in stock trading?
A margin call occurs when your account equity falls below the broker's maintenance margin requirement. The broker will demand you deposit additional funds or liquidate securities to bring your equity back above the minimum. Margin calls can be triggered by falling stock prices.
What is bid-ask spread in forex margin?
The margin in currency exchange refers to the difference between the rate a broker buys and sells currency — essentially the broker's profit. A 2% margin on a $10,000 forex position means the broker takes $200. This is separate from trading margin (leverage) in forex accounts.