Profit margin
& selling price
Enter the cost and the profit you want, and see the selling price before and after VAT — and the difference between “margin” and “markup”.
The difference that trips people up
- Margin
Profit margin
Profit ÷ selling price. If you sell for 100 and it cost 80, the margin is 20%.
- Markup
Markup on cost
Profit ÷ cost. In the same example: 20 ÷ 80 = 25%.
- Formula
Price from margin
Selling price = cost ÷ (1 − margin). So a 20% margin on a cost of 80 means a price of 100, not 96.
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