Free Profit Margin Calculator

Enter what an item costs you and what you sell it for, and see the profit, the margin and the markup. Or start from the margin you want and get the price.

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Your numbers

Mode:

Use the price without VAT.

Currency:

Result

Profit margin

40%

Profit ÷ price

Markup

66.67%

Profit ÷ cost

Profit per item

€40.00

How to use the Profit Margin Calculator

Margin and markup describe the same profit from two sides. Margin is profit as a share of the price; markup is profit as a share of the cost. A product that costs 60 and sells for 100 has a 40% margin and a 66.67% markup. Mixing them up is a common way to underprice, so this calculator always shows both.

  1. 1Choose whether you know the price or want a target margin.
  2. 2Enter the cost per item.
  3. 3Enter the selling price or the target margin.
  4. 4Read the profit, margin and markup.

Frequently asked questions

What is the difference between margin and markup?

Margin divides the profit by the selling price. Markup divides the same profit by the cost. Cost 60, price 100: margin 40%, markup 66.67%.

How do I find the price for a 30% margin?

Divide the cost by 1 minus the margin. A cost of 70 at a 30% margin gives 70 / 0.7 = 100.

Why can a margin never reach 100%?

A 100% margin would mean the whole price is profit, so the cost would have to be zero. Markup has no such limit.

Should I enter prices with or without VAT?

Without. VAT goes to the tax office, not into your profit, so margins are calculated on net prices.

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