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Margin and markup calculator
Enter any two of cost, selling price, profit, margin and markup. The other three are worked out as you type, with VAT taken out first if your price includes it.
VAT
If you are VAT registered, enter costs without VAT, because you reclaim it. Not registered? Leave the box unticked and enter costs including any VAT you paid. UK rates from GOV.UK, checked 16 October 2026.
Margin
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Markup
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Enter any two of the five figures.
Working
Pricing sums done by hand every week? We build software for that
| Margin | Markup | Price | Price inc VAT | Profit each |
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How it works
- Profit = selling price − cost
- Margin = profit ÷ selling price
- Markup = profit ÷ cost
- Price for a target margin = cost ÷ (1 − margin)
- Price before VAT = price including VAT ÷ (1 + VAT rate)
Type into any two boxes and the other three fill in. If you type into a third, the two you changed most recently are used. Boxes you typed in are marked Entered; the ones we filled in are marked Worked out.
Everything is worked out in full and only rounded for display, to the nearest penny and to two decimal places for percentages. A loss shows as a negative profit and margin.
Questions
What is the difference between margin and markup?
Both compare your profit with something else. Margin compares it with the selling price. Markup compares it with the cost. Sell something for £100 that cost you £80 and the profit is £20. That is a 20% margin, but a 25% markup.
How do I work out a selling price from a margin?
Divide the cost by one minus the margin. For a 40% margin on a £42 cost: £42 ÷ 0.6 = £70. The table under the calculator does this for the margins people ask about most.
Can a margin be more than 100%?
No. Margin is the share of the price that is profit, so it can only reach 100% if the cost is zero. Markup has no upper limit. A 300% markup is a 75% margin.
Should I include VAT?
If you are VAT registered, work on prices without VAT, because the VAT you charge belongs to HMRC. If the price you have entered includes VAT, tick the box and the calculator takes it out first. If you are not registered, you do not charge VAT, so leave the box unticked and count any VAT you pay on costs as part of the cost.
Is this gross margin or net margin?
Gross margin, if the cost is the direct cost of the item: what you paid for it, or what it cost to make. Add a share of your overheads to the cost and the result is closer to a net margin.
Is anything I enter stored or sent anywhere?
No. The calculator runs in your browser. Nothing you type is stored or sent anywhere, and the page sets no cookies.
Bespoke & Consultancy
Pricing that works itself out
If your team keeps prices, costs and margins in spreadsheets, we can build software that does the sums for you, to a fixed price agreed before work starts.
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