Enter the item profit ($) and the item cost ($) into the Cost Plus Margin Calculator. The calculator will evaluate and display the Cost Plus Margin.

## Cost Plus Margin Formula

The following formula is used to calculate the Cost Plus Margin.

CPM = IP / C * 100

- Where CPM is the Cost Plus Margin (%)
- IP is the item profit ($)
- C is the item cost ($)

## How to Calculate Cost Plus Margin?

The following example problems outline how to calculate Cost Plus Margin.

Example Problem #1:

- First, determine the item profit ($).
- The item profit ($) is given as: 30.

- Next, determine the item cost ($).
- The item cost ($) is provided as: 20.

- Finally, calculate the Cost Plus Margin using the equation above:

CPM = IP / C * 100

The values given above are inserted into the equation below and the solution is calculated:

CPM = 30 / 20 * 100 = 150 (%)

Example Problem #2:** **

For this problem, the variables required are provided below:

item profit ($) = 6

item cost ($) = 2

Test your knowledge using the equation and check your answer with the calculator above.

CPM = IP / C * 100** = ?**