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Profit Margin Calculator

Calculate profit, margin and markup, or work backwards to a selling price.

Selling price

£100.00

Profit

£40.00

Margin

40.0%

Profit as a percentage of the selling price.

Markup

66.7%

Profit as a percentage of the cost price.

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How to use the Profit Margin Calculator

  1. 1. Choose Cost & Selling Price to calculate profit, margin and markup from known prices.
  2. 2. Choose Target Margin or Target Markup to work backwards from a percentage to the selling price you need.
  3. 3. Pick a currency for display and enter the values before copying or sharing the result.

Useful tips

  • • Profit margin is profit divided by selling price. Markup is profit divided by cost price, so the two percentages are not interchangeable.
  • • A 40% margin on a £60 cost requires a £100 selling price. That same example is a 66.7% markup.
  • • The currency selector changes the displayed symbol only. It does not perform exchange-rate conversion.

Frequently asked questions

What is the profit margin formula?

Profit equals selling price minus cost. Profit margin is profit divided by selling price, multiplied by 100.

What is the markup formula?

Markup is profit divided by cost, multiplied by 100. Because it uses cost rather than selling price as the denominator, markup is usually higher than margin for a profitable item.

How does Target Margin calculate the selling price?

The calculator rearranges the margin formula: selling price = cost ÷ (1 - target margin as a decimal). A margin of 100% is therefore not a finite selling price and is rejected.

Does this include tax, fees or overhead?

Only if you include those amounts in the cost price yourself. The calculator uses the numbers entered and does not add VAT, card fees, shipping, labour or other overhead automatically.

Is my pricing data uploaded?

No. The calculations run in your browser and the entered values do not need to be uploaded to Wid9et.