Profit Margin Calculator
Work out margin, markup, profit & selling price instantly
Enter any two of cost, selling price and margin and this fills in the rest, along with the markup percentage and the cash profit on a sale. It's the everyday pricing check for anyone selling a product — setting a price to hit a target margin, or working out what margin a price actually leaves once costs are covered.
Margin & Markup
Enter cost and selling price → see margin & markup. Or fill cost + a target below to find the price.
Find the Selling Price
Know your cost and the margin or markup you want? Find the price to charge.
Margin and markup are not the same thing
These two get used interchangeably and they shouldn't be, because the difference quietly eats into a lot of small businesses' profits. Markup is the profit measured against what an item cost you; margin is the same profit measured against what you sold it for. Buy something for £60 and sell it for £100, and you've made £40 — that's a 67% markup on the cost but a 40% margin on the sale.
Because margin is always the smaller of the two, pricing to a markup and then calling it your "margin" overstates how much you're really keeping. Margin is the figure that matters when you're comparing profitability or checking whether a price covers your overheads, since it's expressed in the same terms as your revenue. This tool shows both from the same inputs, so the two never get muddled.
❓ Frequently Asked Questions
What's the difference between margin and markup? ▼
They use the same profit but a different base. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Example: buy at £40, sell at £100 → profit is £60. That's a 60% margin (£60 ÷ £100) but a 150% markup (£60 ÷ £40).
How do I calculate gross profit margin? ▼
Gross margin % = ((Selling price − Cost) ÷ Selling price) × 100. Enter your cost and selling price above and the calculator shows margin, markup and profit instantly.
What price should I sell at for a 50% margin? ▼
To achieve a target margin, divide your cost by (1 − margin). For a 50% margin on a £40 item: £40 ÷ (1 − 0.5) = £80. Use the "Find the Selling Price" section above and set Type to Margin.
Can a margin be over 100%? ▼
No — margin can never reach 100% (that would mean zero cost) since it's profit as a share of the selling price. Markup, however, can exceed 100% easily — a 150% markup just means you're selling for 2.5× what it cost you.
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