Profit Margin Calculator
Enter what something costs you and what you sell it for to see the profit, the margin and the markup, with VAT taken out of the selling price if it includes VAT.
About this tool
Margin and markup describe the same profit in two different ways. Margin is profit as a share of the selling price, which is how accountants and most retailers talk about it. Markup is profit as a share of the cost, which is how many people set prices. Buying at £12 and selling at £20 is £8 profit: a 40% margin but a 66.7% markup. Mixing them up is one of the commonest pricing mistakes.
If you're VAT registered and your selling price includes VAT, tick the box: the VAT is taken off before the margin is worked out, because you pass it on to HMRC. If you need to set a price from a target margin or markup, use the Markup Percentage Calculator. Your figures are remembered on this device.