Trade Margin Calculator
Calculate gross profit, margin percentage, and markup percentage from buy and sell prices. Understand the difference between margin and markup.
How to Use the Trade Margin Calculator
- Enter the buy (cost) price.
- Enter the sell (revenue) price.
- Click Calculate to see profit, margin, and markup percentages.
Cas d'utilisation
- •Analysing profitability of retail or wholesale products.
- •Setting prices to achieve target margin goals.
- •Comparing margin performance across product lines.
- •Negotiating with suppliers based on margin requirements.
Formule
Profit = sell − buy. Margin % = profit / sell × 100. Markup % = profit / buy × 100.
Questions fréquemment posées
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price. They measure the same profit from different bases.
What is a healthy trade margin?
Margins vary widely by industry. Retail typically targets 30–50% margin. Wholesale often works with 10–20% margin.
How do I convert markup to margin?
Margin = markup / (1 + markup). For example, a 50% markup equals a 33.3% margin.