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Profit margin & markup calculator

Enter your cost and price to see profit, margin and markup instantly — or work out the price to hit a target margin.

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Gross profit

£0.00

Profit margin

0.0%

Markup

0.0%

Price from a target margin

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Sell at

£0.00

Margin vs markup — what’s the difference?

Margin is profit as a percentage of the sale price; markup is profit as a percentage of the cost. A £40 profit on a £100 sale is a 40% margin but a 66.7% markup — same money, two different numbers.

Margin and markup, explained

Two ways to express the same profit — knowing both helps you price with confidence.

Profit margin

Profit as a percentage of the sale price: (price − cost) ÷ price. A £40 profit on a £100 sale is a 40% margin.

Markup

Profit as a percentage of the cost: (price − cost) ÷ cost. A £40 profit on a £60 cost is a 66.7% markup.

Price with intent

Decide the margin you need to cover overheads and profit, then set the price to hit it: cost ÷ (1 − margin).

Profit margin FAQs

What is the difference between margin and markup?

Margin is profit measured against the sale price, while markup is profit measured against the cost. The same £40 profit is a 40% margin on a £100 sale but a 66.7% markup on a £60 cost.

How do I calculate profit margin?

Subtract the cost from the sale price to get the gross profit, then divide by the sale price and multiply by 100. For example, (£100 − £60) ÷ £100 = 40% margin.

How do I set a price to hit a target margin?

Divide your cost by (1 − the margin as a decimal). To make 50% margin on a £60 item, charge £60 ÷ (1 − 0.5) = £120.

What is a good profit margin?

It varies widely by industry — retail often runs on thin margins while services can be much higher. This tool shows gross margin (before overheads); track net margin in your accounts to see true profitability.

Know your real margins

Neetrix tracks cost, price and profit across every product and job, with live profitability dashboards — so you always know what’s actually making you money.