Profit and markup calculator

Price for profit. See markup, margin and profit side by side.

Many small businesses mix up markup and margin, and price too low because of it. This shows both, side by side.

Why use it

A 50% markup is only a 33% margin. Knowing the difference protects your profit.
Work backwards from the margin you want to the price you should charge.
See the profit per item before you set the price.

How it works

Enter what the item costs you.
Enter your selling price, or the margin or markup you want.
Read profit, markup and margin together.

Good to know

Markup is profit divided by cost. Margin is profit divided by price. Same profit, two different percentages.
A 100% markup, doubling your cost, is a 50% margin.

Questions

What is the difference between markup and margin?

Markup compares profit with your cost. Margin compares profit with the selling price. Buy at 100, sell at 150: profit 50, markup 50%, margin 33.3%.

What is a good margin?

It depends on the trade. Shops with high volume often run thinner margins than services or specialist products. Know your costs first.

Does this include tax?

No. Work with prices before tax, then use the tax calculator.

Please note

Provided free, as is, for general use. It is not legal, tax, accounting or financial advice. Check that your document or figure meets the rules where you are before you rely on it.