Profit Margin Calculator
Find profit margin, markup, and selling price from cost.
Profit margin
60%
Profit £60.00 on £100.00 revenue
Profit
£60.00
Markup
150%
Selling price
£100.00
Margin is profit ÷ revenue. Markup is profit ÷ cost — they are not the same percentage.
In-depth explanation
Calculate profit, margin (profit ÷ revenue), and markup (profit ÷ cost). Or work backwards from a target margin or markup to a selling price. Everything runs locally in your browser — your inputs are not uploaded to produce the result.
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% margin equals a 100% markup. Only if cost is zero. Target margin must stay below 100% to calculate a selling price.
Enter amounts consistently (usually ex-tax for margin analysis). Use the VAT Calculator for tax add/remove. Use Profit Margin Calculator for quick planning; confirm important money, tax, or health decisions with an official source or professional when needed.
Margin is profit over selling price; markup is profit over cost. Mixing them up doubles or halves a price by accident. A 50% margin means the cost is half the price; a 50% markup means you added half the cost on top.
Work backwards from a target margin to a selling price only if that margin is below 100%. Do the analysis ex-VAT unless you have a reason not to. Pair with the VAT Calculator when the customer sees a gross price.
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Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% margin equals a 100% markup.
Can margin be 100%?
Only if cost is zero. Target margin must stay below 100% to calculate a selling price.
Does this include VAT/sales tax?
Enter amounts consistently (usually ex-tax for margin analysis). Use the VAT Calculator for tax add/remove.
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