Enter the material selling price (\$) and the material cost (\$) into the Material Margin Calculator. The calculator will evaluate and display the Material Margin.

## Material Margin Formula

The following formula is used to calculate the Material Margin.

MM = (MSP – MC) / MSP * 100

• Where MM is the Material Margin (%)
• MSP is the material selling price (\$)
• MC is the material cost (\$)

## How to Calculate Material Margin?

The following example problems outline how to calculate Material Margin.

Example Problem #1:

1. First, determine the material selling price (\$).
• The material selling price (\$) is given as: 50.
2. Next, determine the material cost (\$).
• The material cost (\$) is provided as: 25.
3. Finally, calculate the Material Margin using the equation above:

MM = (MSP – MC) / MSP * 100

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

MM = (50 – 25) / 50 * 100 = 50.00 (%)

Example Problem #2:

For this problem, the variables required are provided below:

material selling price (\$) = 70

material cost (\$) = 30