Margin Calculator

Enter selling price and cost for multiple products to calculate margin and markup.

Product Name Selling Price (£) Cost per Unit (£) Margin Markup Action

Total Products

0

Average Margin

0%

Average Markup

0%
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What is profit margin?

Profit margin is the percentage of your selling price that becomes profit after costs are deducted. It shows how efficiently a product or business generates profit from sales.

How to calculate margin and markup

The standard formulas are:

Margin = (Selling Price - Cost) ÷ Selling Price

Markup = (Selling Price - Cost) ÷ Cost

Margin and markup are related, but they are not the same. Margin uses selling price as the base, while markup uses cost as the base.

Example of a margin calculation

If you sell a product for £20 and it costs £8, your profit is £12. Your margin is £12 divided by £20, which is 60%. Your markup is £12 divided by £8, which is 150%.

Why margin analysis matters for small businesses

Margin analysis helps business owners understand which products are more profitable and whether prices are sustainable. It is useful for reviewing performance, comparing products, and improving profitability.

Use this margin calculator

This calculator helps you work out both margin and markup from your selling price and cost. It is useful for retailers, online sellers, freelancers, and small business owners.

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