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Enter your cost and price to see profit, margin and markup instantly, or work out the price to hit a target margin.
Gross profit
£0.00
Profit margin
0.0%
Markup
0.0%
Sell at
£0.00
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.
Two ways to express the same profit. Knowing both helps you price with confidence.
Profit as a percentage of the sale price: (price − cost) ÷ price. A £40 profit on a £100 sale is a 40% margin.
Profit as a percentage of the cost: (price − cost) ÷ cost. A £40 profit on a £60 cost is a 66.7% markup.
Decide the margin you need to cover overheads and profit, then set the price to hit it: cost ÷ (1 − margin).
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.
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.
Divide your cost by (1 − the margin as a decimal). To make 50% margin on a £60 item, charge £60 ÷ (1 − 0.5) = £120.
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.
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.