Margin & markup calculator
Enter any two of cost, price, margin or markup, and see the other two calculated instantly, plus what changing one means for the rest.
Margin & markup converter
Enter any two of the four figures below, the other two update instantly.
Margin and markup answer different questions on the same numbers: margin is profit as a share of the price you charge, markup is profit as a share of what the item cost you. Edit any two fields and the other two, plus profit, recalculate from them.
How it works
Margin is your profit as a percentage of the selling price: (price minus cost) divided by price. Markup is your profit as a percentage of the cost: (price minus cost) divided by cost. The two are easy to confuse but give different numbers on identical figures, a 50% margin corresponds to a 100% markup, which is a common source of pricing mistakes for freelancers and contractors quoting from cost for the first time.
Frequently asked questions
Why is markup always higher than margin, on the same numbers?
Because markup divides profit by the smaller number (cost), while margin divides it by the larger number (price), so markup is mathematically always the higher percentage for any profitable price.
Which should I use to price my products?
Most retailers think in markup when pricing from cost, but margin is what actually determines your profitability against revenue, so it's worth checking both before settling on a price.
What if my price is lower than my cost?
Then you're selling at a loss, and both margin and markup will show as negative, which this tool will display rather than hide.
Does VAT affect these figures?
Use VAT-exclusive cost and price for a true margin and markup picture, since VAT you charge is not your revenue, it's collected on HMRC's behalf. See our VAT registration guide if you're not sure whether this applies to you yet.
Related tools
These results are a simplified illustration based on 2026/27 rates, not advice. Your real position depends on your full circumstances. For a personalised answer, book a free consultation.
Numbers looking complicated?
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