Margin Calculator Calculate profit margin, markup, trading margin, or breakeven points — with visualizations and industry...
Margin Calculator
Calculate profit margin, markup, trading margin, or breakeven points — with visualizations and industry benchmarks.
Gross Margin** = (Revenue − COGS) / Revenue → Measures profitability *per dollar of sales*
Markup** = (Price − Cost) / Cost → Measures pricing *over cost*
Example: $30 cost, $50 price: • Margin = ($50 − $30) / $50 = **40%** • Markup = ($50 − $30) / $30 = **66.7%**
✅ Industry Benchmarks (Gross Margin): • Software: 70–90% • Apparel: 45–55% • Grocery: 20–30% • Restaurants: 60–70% (food cost = 30%)
⚠️ Leverage magnifies both gains **and losses**:
- Stocks (Reg T): 50% margin → $10K position requires $5K equity
- Forex: 2% margin (50:1) → $100K position requires $2K equity
- Crypto: 1% margin (100:1) → $100K position requires $1K equity
Liquidation Price** = Entry × (1 − 1/Leverage) Example: $50 stock, 5:1 leverage → Liquidation at **$40** (20% drop)
✅ Pro Tip: Never use max leverage. 2:1–5:1 is prudent for stocks; 10:1 for forex.
Breakeven Units** = Fixed Costs / (Price − Variable Cost)
Contribution Margin** = Price − Variable Cost → Each unit contributes this amount toward covering fixed costs.
Example: $5K fixed, $20 variable, $50 price: • Contribution = $30 • Breakeven = 5,000 / 30 = **167 units**
📉 Operating Leverage** = Contribution Margin / Operating Income High leverage = high risk/reward (e.g., software); low = stable (e.g., utilities).
➡️ Retail Margin
Enter cost, price, and units to see margin, markup, total profit, and breakeven.
➡️ Trading Margin
Model required equity, liquidation price, and risk per trade.
➡️ Breakeven
Find how many units you must sell to cover costs.
Note: All calculations assume no taxes, fees, or volume discounts.