Margin and markup calculator

Work out the margin and markup on a price, or the selling price you need for a target margin.

How it works

Margin and markup aren’t the same thing. Margin is profit as a share of the selling 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 66.7% markup.

To price for a target margin, divide the cost by (1 − margin): for 40%, 60 / 0.6 = 100.

Margin = (price − cost) / price
Markup = (price − cost) / cost
Price = cost / (1 − margin)

Frequently asked questions

Why can’t margin reach 100%?

Because the cost would have to be zero. Markup, on the other hand, can be 200% or more.

Should I use prices with or without VAT?

Without. VAT isn’t yours: you collect it and pass it on to the tax authority.

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