Margin Calculator – Profit Margin, Stock & Forex Margin Calculator

Calculate profit margins, markups, and trading margins. Free margin calculator for business profitability, stock trading, and currency exchange margins.

Margin Calculator

💡 Tip: Provide any 2 values to calculate the rest. Use this calculator for business profitability analysis and pricing strategy.
Cost: The cost of the product.
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
25.00%
Profit
$40.00
Markup
33.33%

Margin Breakdown

Cost (75%)
Profit (25%)
💡 Tip: Calculate the minimum amount required in your account to purchase stocks on margin.
Stock price: The per-share stock price.
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

Total Stock Value
$1,830.00
Amount Required
$549.00
Loan Amount
$1,281.00
💡 Tip: Calculate the minimum amount to maintain in your margin account for currency trading.
Exchange rate: The exchange rate of the currency to purchase in your home currency.
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

Total Amount
$130.00
Margin Used
1:20
Amount Required
$6.50

Frequently Asked Questions

What is profit margin?

Profit margin is a financial metric that shows what percentage of revenue becomes profit. It indicates how profitable a business is.

Profit Margin% = (Profit / Revenue) × 100

Example: If you sell a product for $100 with a cost of $75:

Profit = $100 - $75 = $25
Profit Margin = ($25 / $100) × 100 = 25%
What is the difference between margin and markup?

Profit Margin: Profit divided by revenue (selling price)

Margin% = (Profit / Revenue) × 100

Markup: Profit divided by cost

Markup% = (Profit / Cost) × 100

Key Difference: They produce different percentages. A 20% margin is not the same as a 20% markup.

Example with $100 cost and $20 profit:
Margin = 20 / 120 = 16.67%
Markup = 20 / 100 = 20%
How do I calculate markup from margin?

Use this formula to convert profit margin to markup:

Markup% = (Margin% / (100 - Margin%)) × 100

Example: Converting 25% margin to markup:

Markup = (25 / (100 - 25)) × 100 = (25 / 75) × 100 = 33.33%
What is stock trading margin?

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.

Amount Required = (Stock Price × Shares × Margin%) / 100

Example: Buying $1,830 worth of stock with 30% margin requirement:

Amount Required = 1,830 × 0.30 = $549
Loan Amount = 1,830 - 549 = $1,281
What is a margin call?

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
What is forex margin trading?

Forex margin allows you to control large currency positions with relatively small capital. The margin ratio determines how much leverage you get.

Amount Required = (Exchange Rate × Units) / Margin Ratio

Example: With 20:1 leverage, 100 EUR at 1.3 rate:

Amount Required = (1.3 × 100) / 20 = $6.50
Why use leverage and margin?

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
How can I improve profit margins?

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