Margin Calculator

Calculate Margin



Formula

To calculate the Margin (M):

\[ M = \left( \frac{GP}{ROGS} \right) \times 100 \]

Where:

What is Margin?

Margin is the percentage of sales revenue that exceeds the cost of goods sold (COGS). It is calculated by dividing the gross profit by the revenue of goods sold and then multiplying by 100 to express the result as a percentage. Margin is an important metric for understanding the profitability of a product or service.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ M = \left( \frac{50}{100} \right) \times 100 = 50 \% \]

The Margin is 50%.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ M = \left( \frac{75}{150} \right) \times 100 = 50 \% \]

The Margin is 50%.