Margin Calculator
Revenue: The income generated by selling the product.
Profit: The money left after deducting cost from revenue.
Margin: The percentage of profit vs. revenue.
Markup: The percentage of profit vs. cost.
▼ Modify the values and click the Calculate button to use
Result
Margin Breakdown
Number of shares: The number of shares you want to purchase.
Margin requirement: The percentage required by the broker to make the margin purchase.
Amount required: The minimum amount required in your account to purchase.
▼ Modify the values and click the Calculate button to use
Result
Margin ratio: The ratio of margin to use (e.g., 20:1 means you need 1/20th of the amount).
Units: The amount of currency to purchase.
Amount required: The amount required in your home currency to make the purchase.
▼ Modify the values and click the Calculate button to use
Result
Frequently Asked Questions
Profit margin is a financial metric that shows what percentage of revenue becomes profit. It indicates how profitable a business is.
Example: If you sell a product for $100 with a cost of $75:
Profit Margin = ($25 / $100) × 100 = 25%
Profit Margin: Profit divided by revenue (selling price)
Markup: Profit divided by cost
Key Difference: They produce different percentages. A 20% margin is not the same as a 20% markup.
Margin = 20 / 120 = 16.67%
Markup = 20 / 100 = 20%
Use this formula to convert profit margin to markup:
Example: Converting 25% margin to markup:
Stock margin is money borrowed from your broker to purchase securities. The margin requirement is the percentage of purchase price you must provide with your own funds.
Example: Buying $1,830 worth of stock with 30% margin requirement:
Loan Amount = 1,830 - 549 = $1,281
A margin call occurs when your account equity falls below the required maintenance margin level. Your broker will demand you deposit additional funds or sell positions to meet the requirement.
Why it happens:
- Security prices decline significantly
- Your account value drops below maintenance requirement
- Broker demands additional funds
Forex margin allows you to control large currency positions with relatively small capital. The margin ratio determines how much leverage you get.
Example: With 20:1 leverage, 100 EUR at 1.3 rate:
Advantages:
- Control larger positions with less capital
- Amplify potential gains
- More efficient use of capital
Risks:
- Amplify potential losses
- Margin calls can force liquidation
- Interest charges on borrowed funds
- Risk of losing more than initial investment
Increase Revenue:
- Raise prices strategically
- Increase sales volume
- Upsell premium products
- Expand customer base
Reduce Costs:
- Negotiate better supplier prices
- Reduce production waste
- Improve operational efficiency
- Lower overhead expenses