💷 Profit Margin Calculator

Work out gross profit, margin percentage, markup percentage, or the selling price you need to hit a target margin. Fast, free, and fully client side.

£
Your direct cost before markup.
£
What you charge the customer.
%
Used in target modes only.
£40.00
Gross Profit
33.33%
Margin
50.00%
Markup
£120.00
Selling Price
Formula Profit = selling price - cost. Margin = profit ÷ selling price. Markup = profit ÷ cost.

How profit margin works

Gross profit is the difference between your selling price and your cost price. Profit margin shows how much of the final selling price you keep as gross profit. Markup shows how much you added on top of cost.

Margin vs markup

These are not the same. If something costs £80 and you sell it for £120, the profit is £40. That means the markup is 50% because £40 is half of £80. But the margin is 33.33% because £40 is one third of the £120 selling price.

Target margin pricing

If you know your costs and want to hit a margin goal, divide cost by 1 minus the target margin as a decimal. Example: a cost of £80 with a 20% target margin needs a selling price of £100.

Target markup pricing

If you work in markup instead, multiply your cost by 1 plus the markup rate. Example: £80 cost with 50% markup gives a selling price of £120.

Use cases

This is handy for pricing freelance work, wholesale products, service packages, and quick quote checks before you send invoices or update a price list.

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