--- title: "Markup and Margin Calculator | Product Metrics" description: "Free markup and margin calculator, also a margin calculator UK with VAT in £: get margin, markup, profit and price from cost, for one product or a list." canonical: "https://www.productmetrics.io/margin-calculator" pageType: feature language: en alternates: en: "https://www.productmetrics.io/margin-calculator" nl: "https://www.productmetrics.io/nl/marge-berekenen" de: "https://www.productmetrics.io/de/marge-berechnen" x-default: "https://www.productmetrics.io/margin-calculator" publisher: "Product Metrics" dateModified: 2026-10-07 image: "https://www.productmetrics.io/og/margin-calculator.png" --- > Content index: https://www.productmetrics.io/llms.txt # 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._ ## 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. Price ladder for a cost of €60.00: | 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 | ## 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%. ## 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 and the markup it equals: | 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: Selling price €90.00 split into cost €60.00 and profit €30.00. Markup €30.00 ÷ €60.00 = 50.0%. Margin €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. - [Markup vs margin](https://www.productmetrics.io/glossary/markup-vs-margin) - [Gross margin](https://www.productmetrics.io/glossary/gross-margin) ## 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. Margin calculator UK worked example 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. - [GOV.UK: VAT rates](https://www.gov.uk/vat-rates): UK standard rate 20% ## Which costs belong in your margin, and which come after it. - **Cost of goods.** What you paid for the product, or made it for. This is the cost field above, and it sets the margin. - **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. - [Cost of goods sold](https://www.productmetrics.io/glossary/cost-of-goods-sold) - [Contribution margin](https://www.productmetrics.io/glossary/contribution-margin) ## 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. - [Break-even ROAS calculator](https://www.productmetrics.io/break-even-roas-calculator) ## 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. ## Check the maths yourself, and see where the rates come from. 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. | Step | Formula | | --- | --- | | 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 | Last updated 7 October 2026. - [GOV.UK: VAT rates](https://www.gov.uk/vat-rates): UK standard rate 20% - [Your Europe: VAT rules and rates](https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm): Netherlands 21%, Germany 19% _The currency switch changes the symbol only: no exchange rates are used. Example amounts are illustrative data._ ## Embed this calculator Paste this script tag into your own page to show the calculator there, with the same maths and no sign-up. It fits the width of your page, resizes with the calculator and follows the visitor’s light or dark setting. The script adds the calculator and a link to the full version under it. Keep the attribution link: it credits the calculator. `` ## Related pages. - [Break-even ROAS calculator](https://www.productmetrics.io/break-even-roas-calculator): The ROAS each product needs to make a profit. - [Markup vs margin](https://www.productmetrics.io/glossary/markup-vs-margin): Both formulas, with a worked example. - [Gross margin](https://www.productmetrics.io/glossary/gross-margin): Margin after the cost of goods sold. - [Contribution margin](https://www.productmetrics.io/glossary/contribution-margin): Margin after shipping, fees and returns too. - [Cost of goods sold](https://www.productmetrics.io/glossary/cost-of-goods-sold): What goes into the cost field. - [MER and nCAC calculator](https://www.productmetrics.io/mer-calculator): Marketing efficiency and new customer cost from your totals. - [Product Segmentation](https://www.productmetrics.io/product-segmentation): Segment products by advertising clicks and return. ## Take the margin to every product, and see which earn their ad spend. Product Metrics segments your products by advertising clicks and return, then writes each segment to a Merchant Center label your campaigns use. - [Analyse your products for free](https://app.productmetrics.io/): Log in with Google, no credit card Also available in - [Nederlands](https://www.productmetrics.io/nl/marge-berekenen) - [Deutsch](https://www.productmetrics.io/de/marge-berechnen) --- Published by Product Metrics (Berend Vrakking, founder). HTML version: https://www.productmetrics.io/margin-calculator