Invoicing and finance · Free
Profit margin and selling price calculator
Find out what margin a price leaves you or what price you need to earn what you want, with margin and markup kept apart.
Guide
The difference between margin and markup
Margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. With the same cost and price they give different figures, and mixing them up is one of the most expensive pricing mistakes.
If you want a 30% margin and apply a 30% markup to cost, your real margin will be 23%.
How to find the selling price for a target margin
Price = cost ÷ (1 − margin). For a 40% margin on a €60 cost: 60 ÷ 0.6 = €100. Check: (100 − 60) ÷ 100 = 40%.
What margin your business needs
Each product's margin has to cover the company's fixed costs and leave a profit. The break-even calculator shows how many sales you need with the margin you have.
How it works
- Choose whether you start from a price or a target margin.
- Enter the cost and the price or margin.
- See margin, markup and profit.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit over the selling price; markup is profit over cost. Buying at €60 and selling at €100 gives a 40% margin and a 66.7% markup.
How do I calculate the price for a given margin?
Price = cost ÷ (1 − margin). For a 40% margin on a €60 cost: 60 ÷ 0.6 = €100.
Does the calculation include VAT?
No. Use costs and prices excluding VAT. To add or remove VAT, use the VAT calculator.
Do you do this every day?
If you merge documents, prepare invoices or copy data between programs every day, that can be automated, and it's what we do.