1. What is 100% Margin?

A 100% margin means that the selling price is exactly double the cost price. This represents a 50% markup on cost. In business terms, this means you earn $1 for every $1 spent on the product.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Cost — The original price you paid for the product
• 2 — The multiplier for 100% margin (double the cost)

Explanation: When you want to achieve 100% margin (which is different from 100% markup), you simply double your cost price to get the selling price.

3. Importance of Margin Calculation

Details: Understanding margin is crucial for pricing strategies, profitability analysis, and business planning. A 100% margin ensures you earn as much as you spend on the product.

4. Using the Calculator

Tips: Enter your product cost in USD. The calculator will automatically compute the selling price needed to achieve 100% margin.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between margin and markup?
A: Margin is profit as a percentage of selling price, while markup is profit as a percentage of cost. 100% margin = 50% markup.

Q2: Is 100% margin realistic for all products?
A: It depends on the industry. Some luxury goods achieve this, while competitive markets may have lower margins.

Q3: How does this compare to gross margin?
A: This is gross margin calculation. Net margin would deduct additional expenses.

Q4: What if my costs change frequently?
A: You should recalculate your selling price whenever your costs change to maintain the desired margin.

Q5: Can I use this for service pricing?
A: Yes, if you can quantify your "cost" (time, materials, etc.), this formula works for services too.