Profit margin and markup calculator

This business calculator turns a cost price and selling price into the three numbers every seller needs: the gross profit per unit, the profit margin (profit as a percentage of the selling price), and the markup (profit as a percentage of the cost). It is essential for pricing products, comparing suppliers, and protecting your bottom line.

Margin vs markup — what’s the difference?

They are easy to confuse but very different. Markup is profit divided by cost, so a product costing £40 sold at £100 has a 150% markup. Margin is profit divided by the selling price, so the same product has a 60% margin. Margin can never exceed 100%, while markup can be far higher. Knowing both helps you price confidently and avoid undercharging.

Pricing for profit

To hit a target margin, remember selling price = cost ÷ (1 − margin). For a 50% margin on a £40 item, you would sell at £80. Use this tool to test different prices and see how margin and markup move. For personal finances, see our budget calculator and loan calculator.

Frequently asked questions

Which should I use, margin or markup?

Retailers usually think in margin (a share of revenue), while markup is handy when setting a price from a known cost. This calculator shows both so you can use whichever suits.

Disclaimer: This calculator is for general business guidance only and does not account for tax, overheads, or other costs.