Profit Margin Calculator
Enter your cost and selling price to see your profit, margin, and markup — all calculated instantly.
Margin vs. markup — they're not the same
Margin is profit as a percentage of your selling price. If you sell something for £80 that cost £50, your profit is £30, and your margin is £30 ÷ £80 = 37.5%.
Markup is profit as a percentage of your cost. Using the same numbers, your markup is £30 ÷ £50 = 60%. Same sale, two very different-looking percentages — mixing these up is one of the most common pricing mistakes.
Frequently asked questions
What's a "good" profit margin?
It varies enormously by industry — retail, services, and manufacturing all have very different typical margins. There's no universal target; compare against others in your specific field.
Should I price based on margin or markup?
Either works, but be clear about which one you're using — a "50% markup" and a "50% margin" produce very different selling prices from the same cost.
Does this include VAT or other costs?
No — this is a simple cost vs. selling price calculation. For UK VAT specifically, use the VAT Calculator alongside this one.