Enter the sales price ($) and the item cost ($) into the Price Margin Calculator. The calculator will evaluate and display the Price Margin.

## Price Margin Formula

The following formula is used to calculate the Price Margin.

**PRM = (SP – IC) / SP * 100**

- Where PRM is the Price Margin (%)
- SP is the sales price ($)
- IC is the item cost ($)

## How to Calculate Price Margin?

The following example problems outline how to calculate Price Margin.

Example Problem #1:

- First, determine the sales price ($).
- The sales price ($) is given as: 60.

- Next, determine the item cost ($).
- The item cost ($) is provided as: 30.

- Finally, calculate the Price Margin using the equation above:

PRM = (SP – IC) / SP * 100

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

PRM = (60 – 30) / 60 * 100 = 50 (%)

Example Problem #2:** **

For this problem, the variables required are provided below:

sales price ($) = 70

item cost ($) = 20

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

PRM = (SP – IC) / SP * 100** = ?**