FREE TOOL
Profit margin calculator
Enter your cost and selling price to see profit margin and markup side by side. Have a target margin in mind? Find the selling price that delivers it.
What the product costs you to buy or make.
PROFIT MARGIN
33.3%
Profit per unit £50.00
- Selling price (excluding VAT)
- £150.00
- Price including VAT
- £180.00
- Profit
- £50.00
- Profit marginProfit as a share of the selling price
- 33.3%
- MarkupProfit as a share of cost
- 50%
The calculation runs in your browser; nothing you enter is sent anywhere.
Common questions
Profit margin is profit divided by the selling price: (price − cost) ÷ price. A product that costs £100 and sells for £150 makes £50 profit, a 33.3% margin.
Markup divides profit by cost: 50 ÷ 100 = 50%. Margin divides it by the selling price: 50 ÷ 150 = 33.3%. Adding 30% to cost does not give a 30% margin; for a 30% margin you need to add about 43% to cost.
Price = cost ÷ (1 − target margin). For a product that costs £100 and a 30% margin, the price is 100 ÷ 0.70 = £142.86.
Margins are worked out on prices excluding VAT, because VAT collected is not your income. The calculator shows the price including VAT separately, at the rate you choose.
LET'S TALK
Let’s set your pricing channel by channel.
On the first call we work through which price and margin a product should carry on your own site and on marketplaces.
- Domain, accounts and source code in your name
- Scope and price in a written quote
- Design, development and ads with one contact