Margin Calculator

Profit Margin Calculator:

• •Margin vs Markup: Margin measures profit as a percentage of selling price, while markup measures profit as a percentage of cost. A 50% markup equals approximately 33% margin.
• •Gross Profit Margin: Revenue minus cost of goods sold, divided by revenue. Shows how efficiently you produce or source products.
• •Net Profit Margin: Net profit divided by revenue. Accounts for all expenses including operating costs, taxes, and interest. A net margin above 10% is generally considered good.

Stock Trading Margin Calculator:

• •Federal Regulation T: Requires 50% initial margin for stock purchases. This means you must deposit at least 50% of the purchase price.
• •Maintenance Margin: Minimum equity required after purchase (typically 25-40%). If equity falls below this level, you'll receive a margin call requiring additional funds.
• •Buying Power: Your total purchasing power using margin. With $10,000 equity and 50% margin, you have $20,000 buying power.

Forex Margin Calculator:

• •Leverage: Allows controlling large positions with small capital. 100:1 leverage means $1,000 can control $100,000 position. Higher leverage increases both profit potential and risk.
• •Pip Value: Smallest price movement in forex. For standard lot EUR/USD, 1 pip = $10. Important for calculating profit/loss per price movement.
• •Required Margin: Amount of capital needed to open and maintain a position. With 100:1 leverage, a $100,000 position requires $1,000 margin.