## About Trade Margin Calculator (Formula)

The trade margin calculator is a tool used in business and finance to determine the trade margin or profit margin on a product or service. This calculator employs a formula that takes into account the cost price and the selling price to calculate the trade margin percentage. The formula for calculating trade margin percentage is as follows:

**Trade Margin Percentage = ((Selling Price – Cost Price) / Selling Price) x 100**

Here’s a breakdown of the components involved in the formula:

- Selling Price: The selling price is the price at which a product or service is sold to customers. It represents the revenue generated from the sale.
- Cost Price: The cost price is the price at which a product or service is acquired or produced. It includes all costs associated with the production, procurement, or creation of the product or service.

By subtracting the cost price from the selling price and dividing it by the selling price, the trade margin percentage can be calculated. Multiplying the result by 100 converts it into a percentage.

The trade margin percentage indicates the proportion of the selling price that represents the profit margin or trade margin. It provides insights into the profitability of a product or service and helps in evaluating the financial performance of a business.