About this tool
This free profit margin calculator shows your gross margin, markup and profit for any product or service. It also works backwards as a pricing calculator: set a target margin or markup and see the selling price you need.
How to work out profit margin
- Enter the cost. What it costs you to make or buy one item, or to deliver the service.
- Enter the price or a target. Your selling price, or the margin or markup you want.
- Read margin, markup and profit. Margin is profit as a share of the price; markup is profit as a share of the cost.
Questions people ask
What's the difference between margin and markup?
Margin = profit ÷ selling price. Markup = profit ÷ cost. Buying at 40 and selling at 100 is a 60% margin but a 150% markup.
How do I price for a 30% margin?
Divide the cost by 0.7 (1 − 0.30). A cost of 70 needs a price of 100.
Should prices include VAT or sales tax?
Work out margins without tax, because the tax isn't your money.
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