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

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

MM = (MSP – MC) / MSP * 100 = ?