Free tool
Enter your cost and either a selling price, a target margin or a target markup to instantly see your margin %, markup %, profit and price. Instant, in your browser, no signup.
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Enter amounts excluding VAT.
Enter your cost and one of price, margin or markup to work out the rest.
Profit is simply your selling price minus your cost. The two ways to express it as a percentage are margin and markup:
Margin and markup are often confused. A £60 item sold for £100 has a 40% margin but a 67% markup — same profit, different base. Use whichever your business or industry quotes in, and enter VAT-exclusive figures so the percentages are correct.
Margin is profit expressed as a percentage of the selling price, while markup is profit expressed as a percentage of the cost. For example, buying at £60 and selling at £100 gives a £40 profit — that is a 40% margin (40 ÷ 100) but a 67% markup (40 ÷ 60). Markup is always the higher number.
Subtract the cost from the selling price to get the profit, then divide the profit by the selling price and multiply by 100. Margin % = (price − cost) ÷ price × 100. On a £100 sale that cost £60, the margin is (100 − 60) ÷ 100 = 40%.
Divide the cost by one minus the margin (as a decimal). Price = cost ÷ (1 − margin ÷ 100). To make a 40% margin on a £60 item, the price is 60 ÷ (1 − 0.40) = £100. Pick 'Cost + target margin %' above to do this automatically.
Margin is profit divided by the selling price, so a 100% margin would mean the cost is zero. Any margin at or above 100% is impossible for a product that has a cost, which is why this calculator only accepts a margin below 100%. Markup, by contrast, can exceed 100%.
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