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

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## 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:

- First, determine the material selling price ($).
- The material selling price ($) is given as: 50.

- Next, determine the material cost ($).
- The material cost ($) is provided as: 25.

- 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** = ?**