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Profit Margin Calculator

Use this calculator to check whether a product or service price leaves enough room for profit.

Inputs

Enter your values

Use the direct cost basis you want to compare against the selling price.

Cost must be greater than zero.

Enter the revenue or sale price that the customer pays.

Selling price must be greater than zero.

Keep learning

Use the calculator, then keep the full method close.

This topic also has a deeper guide and a printable reference pack, so you can move from the live answer into the method, assumptions, and worked examples without leaving the topic cluster.

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Input guide

These are the main values the calculator uses. Keep the units consistent and, where relevant, match the assumptions explained in the related guide.

Input

Cost

Unit: GBP

Use the direct cost basis you want to compare against the selling price.

Input

Selling price

Unit: GBP

Enter the revenue or sale price that the customer pays.

Formulae

Profit margin = (selling price - cost) / selling price x 100
Markup = (selling price - cost) / cost x 100

When to use this calculator

Use this page when you are pricing products, reviewing quotes, or checking whether a selling price leaves enough room for profit.

How to read the result

The main result is profit margin as a percentage of selling price. Supporting figures show the gross profit amount and the markup on cost.

Worked example

If something costs 40 and sells for 65, the calculator shows both the cash profit and the percentage margin, which helps you compare prices on a like-for-like basis.

Assumptions and limits

This calculator uses only cost and selling price. It does not include overhead allocation, tax, shipping, refunds, or any costs you do not enter.

Common questions

What is the difference between margin and markup?

Margin is measured against selling price, while markup is measured against cost. They are related, but they are not the same percentage.

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