Profit margin and markup calculator

Enter what something costs you and what you sell it for, or pick the margin you want and get the price.

What do you want to work out?
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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

  1. Enter the cost. What it costs you to make or buy one item, or to deliver the service.
  2. Enter the price or a target. Your selling price, or the margin or markup you want.
  3. 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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