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.

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## 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** = ?**