Enter what an item costs you and what you sell it for. You get the profit, the margin on the price and the markup on the cost.
Formula
Margin (%) = (Price − Cost) / Price × 100 Markup (%) = (Price − Cost) / Cost × 100
Worked example
Bought at 40, sold at 65: profit = 25, margin = 38.46%, markup = 62.5%.
Frequently asked questions
What is the difference between margin and markup?
Margin divides the profit by the selling price; markup divides it by the cost. The same sale has a lower margin than markup.
What is a good profit margin?
It depends on the industry. Retail margins are often far lower than software or service margins.
Should I include VAT?
No. Use prices excluding VAT, since VAT is collected for the state.
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Results are estimates for information only. Check important figures with a professional.