Markup and Margin Calculator

Calculate the selling price from a markup or a target margin, and understand the difference between them.

Starting point

Results

Selling price (excl. VAT)

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Profit per unit

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Markup

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Margin (gross profit margin)

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Markup → margin

Markup Margin
10% 9.1%
20% 16.7%
25% 20%
33.3% 25%
50% 33.3%
100% 50%

Glossary of terms

Unit cost
The cost of purchasing or producing one unit (excluding VAT).
Markup
The amount added to cost, expressed as a percentage of cost. Formula: (price − cost) / cost.
Margin (gross profit margin)
The same amount, expressed as a percentage of the selling price. Formula: (price − cost) / price. Margin is always lower than markup: a 25% markup = a 20% margin. Confusing the two is one of the most common pricing mistakes.
Selling price (excl. VAT)
The price that actually represents your revenue.
Profit per unit
Selling price minus cost.
VAT (18%)
Value added tax, which is added to the price and paid to the state budget. Applies only to businesses registered as VAT payers.
Selling price incl. VAT
The price the buyer pays.

Results are indicative and do not constitute financial advice.

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