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 = ?
