Profit Margin & Markup Calculator
This Profit Margin & Markup Calculator helps businesses, ecommerce sellers, and freelancers calculate the profit margin and markup for any product or service. Input the cost and selling price to instantly determine your margins and markup percentages for pricing decisions.
| Cost Price (£) | |
|---|---|
| Selling Price (£) | |
| Profit Margin (%) | 0.00 |
| Markup (%) | 0.00 |
How to Use the Profit Margin & Markup Calculator
Step-by-Step
- Enter the product or service cost price (£).
- Enter the intended selling price (£).
- Click "Calculate" to see profit margin and markup percentages.
- Use the results to adjust pricing or optimize margins.
Understanding Profit Margin and Markup
Profit margin and markup are crucial for pricing strategy:
- Profit Margin: The percentage of the selling price that is profit.
- Markup: The percentage added to the cost to determine selling price.
Example
If a product costs £50 and you sell it for £80:
- Profit = £80 − £50 = £30
- Profit Margin = (30 ÷ 80) × 100 = 37.5%
- Markup = (30 ÷ 50) × 100 = 60%
Understanding both ensures correct pricing and profitability.
Related Tools and Guides
- Capital Gains Tax Calculator (UK) - Combine investment gains with profit planning.
- Profit Margin & Markup Guide - Learn pricing methods and margin strategies.
- UK VAT Calculator - Ensure VAT inclusion in pricing decisions.
Frequently Asked Questions
What is profit margin and markup?
Margin is profit as a percentage of selling price; markup is profit as a percentage of cost price.
How do I calculate profit margin?
Profit Margin (%) = ((Selling Price − Cost Price) ÷ Selling Price) × 100.
How do I calculate markup?
Markup (%) = ((Selling Price − Cost Price) ÷ Cost Price) × 100.
Can I calculate multiple products?
Yes, input each cost and selling price separately to get individual margins and markups.
Why use both margin and markup?
Margin shows profit relative to revenue, while markup ensures costs are covered and target profit is achieved.