Margin %

The Percent Margin calculator computes the percent margin based on the retail price and the cost.

INSTRUCTIONS: Choose units and enter the following:

• (rp) Retail Price
• (c) Cost

Percent Margin (mp): The calculator returns the percent margin.

The Math / Science

The margin percentage often refers to sales or profitability which may help lead to several key understandings about the company's business model as well as how successful the company is at maintaining its cost structure to gain the proper amount of sales.

The formula for the percent margin is:

    `mp = (rp -c)/rp`

where:

• mp is the margin percentage
• rp is the retail price
• c is the cost

Resource:

• Waters, Shari. "Retail Sales Math Formulas and Equations." About.com. About.com, n.d. Web. 14 July 2015. <http://retail.about.com/od/retailingmath/a/retail_formulas.htm>.