Profit & Margin Calculator
Calculate profit, margin and markup from cost and selling price — or find the right price for a target margin.
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Calculate profit
Price for a target margin
Margin vs. Markup
From cost and selling price: profit = price − cost; margin = profit ÷ price (share of the sale that is profit); markup = profit ÷ cost (how much you added on top of cost). A product bought for 60 and sold for 100 has 40 profit, 40% margin and 66.7% markup — mixing the two up is one of the most common pricing mistakes.
The reverse calculator prices a product for a target margin: price = cost ÷ (1 − margin). For a 40% margin on a 60 cost, price = 60 ÷ 0.6 = 100.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. The same sale always has a higher markup than margin — 40% margin equals 66.7% markup.
How do I price for a 30% margin?
Divide the cost by 0.70. A 70 cost becomes 100. Dividing by (1 − margin) — not multiplying by 1.30 — is the correct method; multiplying gives only a 23% margin.
Should VAT be included in these figures?
No — calculate profit on VAT-exclusive amounts. VAT you collect belongs to the tax office, so including it overstates both revenue and profit.
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Profit & Margin Calculator