Enter the sell price of the commodity ($) and the purchase price of the commodity ($) into the Commodity Margin Calculator. The calculator will evaluate and display the Commodity Margin.
Commodity Margin Formula
The following formula is used to calculate the Commodity Margin.
COM = (SPC – PPC) / SPC * 100
- Where COM is the Commodity Margin (%)
- SPC is the sell price of the commodity ($)
- PPC is the purchase price of the commodity ($)
How to Calculate Commodity Margin?
The following example problems outline how to calculate Commodity Margin.
Example Problem #1:
- First, determine the sell price of the commodity ($).
- The sell price of the commodity ($) is given as: 753.
- Next, determine the purchase price of the commodity ($).
- The purchase price of the commodity ($) is provided as: 278.
- Finally, calculate the Commodity Margin using the equation above:
COM = (SPC – PPC) / SPC * 100
The values given above are inserted into the equation below and the solution is calculated:
COM = (753 – 278) / 753 * 100 = 63.08 (%)
Example Problem #2:
For this problem, the variables required are provided below:
sell price of the commodity ($) = 842
purchase price of the commodity ($) = 239
Test your knowledge using the equation and check your answer with the calculator above.
COM = (SPC – PPC) / SPC * 100 = ?
