Log in with GoogleCost of goods
What you paid for the product, or made it for. This is the cost field above, and it sets the margin.
Free calculator
Margin and markup calculator
Enter what a product costs and what it sells for to get its profit, margin and markup. Or enter the cost and the margin or markup you want, and get the selling price. Amounts exclude VAT unless you add a VAT rate.
Formulas: margin = profit ÷ price, markup = profit ÷ cost.
Last updated 7 October 2026
Your results
After shipping, fees and returns, €26.74 is left per product.
- Margin
- 40.0%
- Profit ÷ price
- Markup
- 66.7%
- Profit ÷ cost
- Profit
- €40.00
- Price − cost
- Shelf price (incl. VAT)
- €100.00
After shipping, fees and returns
- Contribution margin
- 26.7%
- Contribution ÷ price
- Break-even ROAS
- 3.74
- Price incl. VAT ÷ contribution
- Maximum ad spend per order at break-even
- €26.74
- Contribution per order
Ad spend above this loses money on the order. First order only: repeat purchases are not counted.
Break-even ROAS calculator- Revenue after returns
- €92.00
- Product gross profit
- €36.80
- Payment costs
- €2.30
- Reverse logistics
- €2.76
- Shipping net
- €5.00
- Contribution
- €26.74
Your calculation
- €100.00 − €60.00 = €40.00 profit
- €40.00 ÷ €100.00 = 40.0% margin
- €40.00 ÷ €60.00 = 66.7% markup
- €36.80 − €2.30 − €2.76 − €5.00 = €26.74 contribution
- €100.00 ÷ €26.74 = 3.74 break-even ROAS
The start values are illustrative data.
Price for your cost at different margins
Each row is the selling price excl. VAT that gives that margin on your cost, with the markup it equals.
| Margin | Markup | Selling price | Profit |
|---|---|---|---|
| 10% | 11.1% | €66.67 | €6.67 |
| 15% | 17.6% | €70.59 | €10.59 |
| 20% | 25.0% | €75.00 | €15.00 |
| 25% | 33.3% | €80.00 | €20.00 |
| 30% | 42.9% | €85.71 | €25.71 |
| 35% | 53.8% | €92.31 | €32.31 |
| 40% | 66.7% | €100.00 | €40.00 |
| 45% | 81.8% | €109.09 | €49.09 |
| 50% | 100.0% | €120.00 | €60.00 |
| 55% | 122.2% | €133.33 | €73.33 |
| 60% | 150.0% | €150.00 | €90.00 |
How it works
Work out your margin and markup, step by step.
Illustrative data. A product costs €60.00 and sells for €100.00 excl. VAT. The calculator takes three routes from there, one per table.
From cost and price
| Step | Calculation | Result |
|---|---|---|
| Profit | €100.00 − €60.00 | €40.00 |
| Margin | €40.00 ÷ €100.00 | 40.0% |
| Markup | €40.00 ÷ €60.00 | 66.7% |
The same €40.00 of profit is a 40.0% margin and a 66.7% markup.
From cost and the percentage you want
| Step | Calculation | Result |
|---|---|---|
| Price for a 40% margin | €60.00 ÷ (1 − 40%) | €100.00 |
| Price for a 40% markup | €60.00 × (1 + 40%) | €84.00 |
| Shelf price at 21% VAT | €100.00 × (1 + 21%) | €121.00 |
The same 40% means two prices: €100.00 as a margin and €84.00 as a markup.
After shipping, fees and returns
| Step | Calculation | Result |
|---|---|---|
| Revenue after returns | €100.00 × (1 − 8%) | €92.00 |
| Product gross profit | €92.00 × 40% | €36.80 |
| Payment costs | €92.00 × 2.5% | €2.30 |
| Reverse logistics | €92.00 × 3% | €2.76 |
| Shipping net | €5.00 − €0.00 | €5.00 |
| Contribution | €36.80 − €2.30 − €2.76 − €5.00 | €26.74 |
| Contribution margin | €26.74 ÷ €100.00 | 26.7% |
| Break-even ROAS | €100.00 ÷ €26.74 | 3.74 |
Shipping costs €5.00 and none is collected. The payment fee is 2.5%, 8% of orders are returned and reverse logistics is 3%.
Margin and markup
The same profit, divided by a different number.
- Margin
- Profit as a share of the selling price: profit ÷ price. It can never reach 100%.
- Markup
- Profit as a share of the cost: profit ÷ cost. It has no upper limit.
| Margin | Markup |
|---|---|
| 10% | 11.1% |
| 20% | 25.0% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100.0% |
Markup = margin ÷ (1 − margin).
Why a 50% markup is only a 33.3% margin
Cost €60.00
Profit €30.00
- Markup: Profit as a share of the cost
- €30.00 ÷ €60.00 = 50.0%
- Margin: Profit as a share of the whole price
- €30.00 ÷ €90.00 = 33.3%
The profit is the same €30.00. It is half of the cost, but only a third of the price, because the price includes the profit.
UK
Margin calculator UK: work out your margin with VAT in pounds.
Choose £ in the currency switch and enter 20%, the UK standard rate of VAT, in the VAT field. Margin and markup stay on the price excl. VAT. The shelf price is what your customer pays. The switch changes the symbol only: amounts are not converted. A browser set to British English opens the calculator in pounds.
| Step | Calculation | Result |
|---|---|---|
| Profit | £100.00 − £60.00 | £40.00 |
| Margin | £40.00 ÷ £100.00 | 40.0% |
| Markup | £40.00 ÷ £60.00 | 66.7% |
| Shelf price at 20% VAT | £100.00 × (1 + 20%) | £120.00 |
Cost £60.00, price £100.00 excl. VAT: 40.0% margin, 66.7% markup, and £120.00 on the shelf. Illustrative data.
Source for the UK rate: GOV.UK: VAT rates (UK standard rate 20%).
Costs
Which costs belong in your margin, and which come after it.
Shipping
What shipping costs you, minus what the customer pays. Enter both in the shipping, fees and returns block.
Payment fees
A share of the revenue you keep after returns, entered as a percentage.
Returns
The share of orders that come back, and the cost of handling them (reverse logistics).
Margin after the cost of goods alone is gross margin. After all four it is the contribution margin.
Ad target
From margin to your ad target, in three sentences.
Break-even ROAS is 1 ÷ contribution margin %, so each product’s margin sets what its ads can cost. At the start values the contribution margin is 26.7%, so break-even ROAS is 3.74: below that, the ads cost more than the product earns. Put differently, one order can carry up to €26.74 of ad spend at break-even, its contribution. That counts the first order only, not repeat purchases. Product Metrics works on ROAS right away; connect margins to switch to POAS.
Margin and markup questions, answered.
How do I work out margin from cost and price?
Subtract the cost from the price to get the profit, then divide the profit by the price: (€100.00 − €60.00) ÷ €100.00 = 40.0%. The profit is €40.00, and it is 40.0% of the price.
How do you calculate a 20% margin?
Divide the cost by 1 minus the margin. For a cost of €60.00: €60.00 ÷ (1 − 0.20) = €75.00. The profit is €15.00, which is 20.0% of €75.00. A 40% margin on the same cost needs €60.00 ÷ (1 − 0.40) = €100.00, while a 40% markup gives €60.00 × 1.40 = €84.00.
How do you calculate a markup?
Divide the profit by the cost: (€100.00 − €60.00) ÷ €60.00 = 66.7%. To set a price from a markup, multiply the cost by 1 plus the markup: €60.00 × 1.25 = €75.00 at a 25% markup.
What is a 25% markup on €100?
If €100.00 is your cost, the selling price is €100.00 × 1.25 = €125.00. The profit is €25.00, which is a 20.0% margin. If €100.00 is the selling price, the cost is €100.00 ÷ 1.25 = €80.00 and the profit is €20.00.
Is a 20% margin the same as a 25% markup?
They are different numbers for the same price. Margin is profit ÷ price and markup is profit ÷ cost, so a 20% margin is a 25.0% markup and a 25% markup is a 20.0% margin. A product that costs €80.00 and sells for €100.00 makes €20.00: 20.0% of the price and 25.0% of the cost. The formulas are margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin).
Is a 30% markup the same as a 30% margin?
No. A 30% markup is a 23.1% margin (0.30 ÷ 1.30), and a 30% margin is a 42.9% markup (0.30 ÷ 0.70). On a cost of €100.00, a 30% markup sells at €130.00 and a 30% margin sells at €142.86.
Is markup or margin used for pricing?
Use markup if you set prices as cost plus a percentage. Use margin to judge what a sale leaves and what its ads can cost, because break-even ROAS comes from margin. The table above converts one into the other.
How do I add VAT to the price?
Multiply the price excl. VAT by 1 plus the VAT rate: €100.00 × 1.21 = €121.00 at 21%. Enter the rate in the VAT field and the shelf price appears under the results. Margin and markup stay on the price excl. VAT.
Can I use this margin calculator UK for pounds and VAT?
Yes. Choose £ in the currency switch, enter 20% in the VAT field and your cost and price excl. VAT: £60.00 and £100.00 give a 40.0% margin, a 66.7% markup and a £120.00 shelf price. The switch changes the symbol only. 20% is the UK standard rate of VAT (GOV.UK).
How do I work out profit per product?
Profit per product is the selling price minus the cost: €40.00 at the start values. That counts the product only. For what is left after shipping, fees and returns, fill in the last block: €26.74 at the start values. Margins differ per product, so repeat it for each one.
Method
Check the maths yourself, and see where the rates come from.
Last updated 7 October 2026.
Use any basic calculator on one product. Price minus cost is the profit: €100.00 − €60.00 = €40.00. Divide the profit by the price for the margin: €40.00 ÷ €100.00 = 0.40, which is 40.0%. Divide it by the cost for the markup: €40.00 ÷ €60.00 = 0.667, which is 66.7%. The calculator shows the same figures.
- Profit
- Price − cost
- Margin
- Profit ÷ price
- Markup
- Profit ÷ cost
- Price from a wanted margin
- Cost ÷ (1 − margin)
- Price from a wanted markup
- Cost × (1 + markup)
- Margin to markup, and back
- Markup = margin ÷ (1 − margin); margin = markup ÷ (1 + markup)
- Shelf price
- Price × (1 + VAT rate)
- Contribution and break-even ROAS
- Same formulas as the break-even ROAS calculator; break-even ROAS = price ÷ contribution
Sources
- GOV.UK: VAT rates (UK standard rate 20%)
- Your Europe: VAT rules and rates (Netherlands 21%, Germany 19%)
The currency switch changes the symbol only: no exchange rates are used. Example amounts are illustrative data.
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