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