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Profit margin calculator
Currency
Your profit margin
37.5%
Profit
£30.00
Markup
60.0%
Out of every £1 you take, 38p is profit.
CostProfit
What price gives me the margin I want?
Pick a target margin. We use your cost of £50.00.
Sell it for £83.33 to make a 40% margin (£33.33 profit each).
The full picture
| Line | Per item | Per 100 sold | Per 1,000 sold |
|---|---|---|---|
| Sales | £80.00 | £8,000.00 | £80,000.00 |
| Cost | −£50.00 | −£5,000.00 | −£50,000.00 |
| Profit | £30.00 | £3,000.00 | £30,000.00 |
Markup and margin are not the same
| If you add this markup | your margin is |
|---|---|
| 25% | 20.0% |
| 50% | 33.3% |
| 60% | 37.5% |
| 100% | 50.0% |
| 200% | 66.7% |
Quick answers
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 £30 profit on a £50 cost and £80 price is a 37.5% margin and a 60% markup.
How do I work out a price from a target margin?
Divide the cost by one minus the margin. For a 40% margin on a £50 cost: £50 ÷ 0.6 = £83.33.
Should VAT be in the price?
No. If you are VAT registered, take VAT off the selling price first, because that money goes to HMRC and is not your profit.