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.

Using it as a trading profit calculator

The same profit maths works for a trade as for a product sale. For a currency, crypto or commodity position, enter your entry value as the cost and your exit value as the revenue: the calculator returns the profit and the percentage return. For a forex pair such as EUR/USD, profit equals the pip movement multiplied by the pip value and the number of lots — on a standard lot (100,000 units) one pip is about $10, on a mini lot about $1, and on a micro lot about $0.10. So a 40-pip gain on two mini lots is roughly 40 × $1 × 2 = $80 before spread and commission. Commodity contracts such as US oil use a tick value instead of a pip value, but the structure is identical: ticks moved × tick value × contracts.

Always subtract the spread, commission and any overnight swap or funding fee before calling a trade profitable — on short-term trades these costs often outweigh the raw price move. Trading involves substantial risk of loss. This calculator is for arithmetic only and is not financial or investment advice.

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.