Three calculators sit on this page. Profit margin takes any two of cost, revenue, margin, and profit and fills in the rest plus the markup. Stock trading finds the cash a broker requires to buy shares on margin. Currency exchange finds the home-currency deposit for a leveraged FX trade.
Margin vs markup at a glance
Same $40 profit on a $120 cost / $160 sale. Markup is always larger than margin on a profitable sale because cost is the smaller denominator.
| You know | Formula | Result |
|---|---|---|
| Cost $120, revenue $160 | profit = 160 − 120 | $40.00 |
| That profit vs revenue | 40 ÷ 160 | 25.00% margin |
| That profit vs cost | 40 ÷ 120 | 33.33% markup |
| Cost $120, 25% margin | 120 ÷ 0.75 | $160.00 revenue |
Examples
$120 cost sold for $160
Profit is $40.00, margin is 25.00%, and markup is 33.33%. Cost is 75% of revenue on the chart; profit margin is the other 25%.
Price a $80 cost at a 20% margin
Revenue = $80 ÷ 0.80 = $100.00, profit is $20.00, and markup is 25.00%.
Buy 100 shares at $18.30 with a 30% requirement
Amount required = $18.30 × 100 × 0.30 = $549.00.
Buy 100 units at 1.30 with 20:1 leverage
Amount required = 1.30 × 100 ÷ 20 = 6.500 in home currency. The same trade at 1:1 needs 130.000; at 50:1 it needs 2.600.
Formula
Profit, margin, and markup all start from the same two money figures. Margin divides profit by revenue; markup divides the same profit by cost. Percents round to two decimals from the raw (unrounded) algebra; money rounds to the nearest cent independently.
profit = revenue − cost
margin = profit ÷ revenue × 100
markup = profit ÷ cost × 100
revenue = cost ÷ (1 − margin)
= cost × (1 + markup)
Stock-trading cash and the FX deposit are simpler products:
stock amount = price × shares × (requirement ÷ 100)
currency amount = exchange rate × units ÷ leverage ratio
A 25% margin is not a 25% markup. Convert with markup = margin ÷ (1 − margin) and margin = markup ÷ (1 + markup). Mixing the two up is a common way to underprice.
Trading margin limits
The stock and FX tabs calculate only the initial deposit implied by the entered percentage or leverage. They do not calculate maintenance margin, portfolio margin, interest, commissions, price moves, liquidation thresholds, or broker house requirements. The Federal Reserve's Regulation T background and FINRA maintenance-margin guidance describe separate regulatory layers. Confirm current broker terms before trading.