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Margin and markup calculator

Type the cost and the selling price and see your real profit per item — without the VAT, which is not yours — its margin and markup, and the price that gives the margin you want.

  • Free, no sign-up
  • Runs on your device
  • Margin and markup side by side

Margin = profit ÷ selling price. Markup = profit ÷ cost. A 25% margin is a 33% markup — the two are often mixed up.

Questions

What is the margin?

The share of the selling price that stays with you after the cost. Sell at 100 with a cost of 75: the margin is 25%.

Why is the profit counted without VAT?

Because the 14% belongs to the tax authority: you collect it and pay it on. Count it as profit and the money will be short at the end of the month.

What does the break-even line mean?

How many items a month, at this profit, pay for the rent, salaries and bills. What you sell beyond that is your real profit.

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