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# What Is The Margin Calculator Tool?

Margin Calculator is useful for determining any item's revenue when you know its cost and your desired profit margin percentage. You can calculate any of the significant variables in the sales process. This tool has been efficiently created to facilitate the users, so they don't have difficulty calculating margin.

# How To Use The Margin Calculator Tool?

You need to follow the following steps to determine the selling prices for your products.

Step #1: Firstly, you must select the type from the given options: Gross Profit Margin / Stock Trading Margin / Currency Exchange Margin.

Step #2: Enter the cost of items in the field.

Step #3: Enter The Markup percentage in the field.

Step #4: Click the 'Calculate' button.

# What Do The Three Options Mean?

• Gross Profit Margin

When selecting Gross Profit Margin, the calculator works on two factors: cost and revenue. The result determines the sales revenue and displays gross profit figures and markup.

On selecting Stock Trading Margin, the calculator lets you calculate the maintenance margin essential for investors to purchase on margin. You need to enter the stock price values, the number of shares and the margin requirement percentage to achieve the results.

• Currency Exchange Margin

The calculator will give you the minimum deposit amount required to preserve open positions when selecting Currency Exchange Margin. The Currency Exchange Margin is allotted a margin as it's not an allowance but a portion of equity. You need to enter the exchange rate, margin ratio, and the number of units in the boxes provided to achieve the result.

# How To Access The Margin Calculator Tool?

You need an internet connection to calculate using this tool. You are not asked for registrations, nor do we need you to interlink your account with our website for using our Margin Calculator. Moreover, you can calculate the profit margin as often as you require without limitations.

## Q. Why do you need to calculate the margin?

1. Margin calculations assist you in understanding your profitability much better from a general point of view as a business owner.

## Q. What is the difference between profit margin and markup?

1. Markup is a ratio of profit to selling price, whereas margin is the ratio of profit to total revenue.