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:

  1. First, determine the item profit ($). 
    • The item profit ($) is given as: 30.
  2. Next, determine the item cost ($). 
    • The item cost ($) is provided as: 20.
  3. 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 = ?