Switch easily between cost, price, margin and markup. Find the price that gives you a target margin, and see why a 50% markup is only a 33% margin.
- Free to use
- No sign-up needed
- Works on phone and desktop
Private by design: everything happens in your browser. Nothing you enter is sent to our server.
What do you know?
Gross margin
Markup
Profit per sale
Selling price
Margin and markup conversion
| Margin | Markup | Price for £100 cost |
|---|
How to use the margin calculator
- Choose what you know: cost and price, cost and target margin, or cost and markup.
- Enter the figures. Tick the VAT box if your selling price includes VAT.
- Read the margin, markup, profit and price.
- Use the conversion table to translate between margin and markup quickly.
Margin vs markup in plain English
- Margin = profit ÷ selling price. It tells you how much of each sale you keep.
- Markup = profit ÷ cost. It tells you how much you’ve added on top of the cost.
- Price for a target margin = cost ÷ (1 − margin). For a 40% margin on a £60 cost, charge £100.
- Remove VAT first: VAT isn’t your money, so leave it out of margin calculations.
Frequently asked questions
Which should I use, margin or markup?
Use margin to understand profitability and compare products. Markup is handy when setting prices from costs. Just don’t mix them up.
Is this gross or net margin?
Gross margin: it compares the selling price with the direct cost of the item. Net margin also takes off overheads such as rent and wages.
Can a markup be more than 100%?
Yes. A markup of 150% means the price is 2.5 times the cost. A margin, though, can never reach 100%.
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