Cost Plus Margin Calculator

A Cost Plus Margin Calculator is a simple tool that helps you determine the selling price of a product when you know its cost price and the margin percentage you want to earn. This calculator is widely used in finance, retail, and business to quickly set profitable prices.

Formula for Cost Plus Margin

1. Profit Amount Formula

$\text{Profit Amount}=\text{Cost Price}\times \frac{\text{Margin \%}}{100}$

2. Selling Price Formula

$\text{Selling Price}=\text{Cost Price}+\text{Profit Amount}$

Example

Suppose you bought a product for ₹1,000 and you want to add a 20% margin.

Step 1: Calculate Profit Amount

$\text{Profit Amount}=1000\times \frac{20}{100}=200$

Step 2: Calculate Selling Price

$\text{Selling Price}=1000+200=1200$

So, the selling price should be ₹1,200.

Why Use Cost Plus Margin Calculator?

• Helps businesses quickly set profitable prices
• Prevents underpricing or overpricing
• Useful for retailers, wholesalers, and service providers

FAQs

1. What is a Cost Plus Margin Calculator?

A Cost Plus Margin Calculator is a tool that helps businesses and individuals calculate the selling price of a product by adding a margin percentage to its cost price.

2. How do you calculate selling price using margin?

The selling price is calculated by adding the profit (cost price × margin %) to the original cost price.

$\text{Selling Price}=\text{Cost Price}+\left(\text{Cost Price}\times \frac{\text{Margin \%}}{100}\right)$​​​​​​​

3. What is the difference between markup and margin?

• Margin is the percentage of the selling price that is profit.
• Markup is the percentage of the cost price added to determine the selling price.

Both methods are related but not the same.

4. Who can use a Cost Plus Margin Calculator?

This calculator is useful for shopkeepers, wholesalers, retailers, manufacturers, freelancers, and service providers who want to set fair and profitable prices.

5. Is 20% margin the same as 20% profit?

Not exactly. A 20% margin means 20% of the selling price is profit, whereas a 20% markup means 20% of the cost price is added as profit.