Margin Calculator

Use the online margin calculator to calculate the stock trading margin, currency exchange margin as well as profit margin. Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of an investment and the loan amount. Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.

Profit margin is one of the commonly used profitability ratios to gauge the degree to which a company or a business activity makes money. 

In accounting and finance, a profit margin is a measure of a company’s earnings (or profits) relative to its revenue. The three main profit margin metrics are gross profit margin (total revenue minus cost of goods sold (COGS) ), operating profit margin (revenue minus COGS and operating expenses), and net profit margin (revenue minus all expenses, including interest and taxes). This guide will cover formulas and examples, and even provide an Excel template you can use to calculate the numbers on your own.

Profit Margin Formula

When assessing the profitability of a company, there are three primary margin ratios to consider: gross, operating, and net. Below is a breakdown of each profit margin formula.

Gross Profit Margin = Gross Profit / Revenue x 100

Operating Profit Margin = Operating Profit / Revenue x 100

Net Profit Margin = Net Income / Revenue x 100

currency exchange margin

If you are changing a large sum of money into another currency and need a currency exchange broker or bank to transfer the money for you, the currency exchange margin will be important to you.