Calculator
Profit Margin Calculator: margin and markup from your prices
Work out margin, markup and profit from your cost and selling price, or find the price you need for a target margin. Both modes on one screen, no signup.
Runs 100% in your browser. No signup, no uploads.
Margin
0%
Markup
0%
Profit
£0.00
Selling price
£0.00
Profit
£0.00
Markup on cost
0%
Margin, markup and profit: the difference
Profit is the money left when you subtract the cost from the price. Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. They sound similar and confuse almost everyone, which is exactly why they are both on the same screen.
Example: you buy a product for 60.00 and sell it for 100.00. The profit is 40.00. The margin is 40% of the price, and the markup is 66.7% on cost. The same 40.00 profit looks very different depending on how you quote it.
The second mode does the reverse: give it your cost and a target margin, and it returns the price you need. To keep a 40% margin on a 60.00 cost, the price must be 100.00, because cost divided by (1 minus margin) gives 60 / 0.60.
Margin to markup, markup to margin
The two numbers convert cleanly. A 25% margin equals a 33.3% markup, a 33.3% margin a 50% markup, a 40% margin a 66.7% markup, and a 50% margin a 100% markup (keystone pricing).
The rule: markup = margin divided by (1 minus margin), and margin = markup divided by (1 plus markup), with both as decimals. The calculator shows both figures on every result, and the guide on margin vs markup carries the full conversion table.
Common questions
What is the formula for profit margin?
Margin = (selling price minus cost) divided by selling price, times 100. Sell for 100.00 what cost 70.00 and the margin is 30%.
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 40% margin corresponds to a 66.7% markup on the same sale.
How do I convert markup to margin?
Divide the markup by (1 plus the markup). A 50% markup becomes 0.50 / 1.50 = 33.3% margin. The calculator shows both numbers for every pair of prices.
How do I set a price for a target margin?
Divide the cost by (1 minus the target margin). For a 40% margin on a 60.00 cost: 60 / 0.60 = 100.00. The calculator does this in the second mode.
Should margin include VAT?
No. Margins are calculated on prices without VAT. Remove VAT from your selling price first (use the reverse VAT calculator), then work out margin on the net figures.
What is a good profit margin?
It depends on the industry. Grocery retailers run on thin single-digit margins, software and consulting often target 50% or more. Compare against your own sector rather than an abstract number.