Profit margin Calculator

Calculate a selling price from a target gross margin.

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How to use this calculator

01

Your measurements

Enter your project values to update the estimate.

currency units
%

View your estimate

Margin is profit divided by selling price. Include all relevant costs before applying the margin.

YOUR ESTIMATE

Selling price

1,250currency units
Gross profit250 currency units
Equivalent markup25 %

Calculated from your measurements.

Pricing calculator

Use your supplier’s rate or enter a quoted total. Save each estimate to your project and print everything together.

Your selected quantity already includes any allowance shown in that result. Check whether you are pricing individual items or whole packs. Delivery, tax and labour are not added automatically. A quoted total applies only to this saved calculation.

Profit margin Calculator: measuring notes and method

Read the profit as a share of the sale

The equivalent markup can exceed the target margin because markup divides profit by cost, while margin divides it by selling price.

Define what the cost includes

Gross profit is not necessarily net profit after business overheads. Use a consistent tax basis for cost and selling price.

CHECK A PRACTICAL EXAMPLE

A margin target uses the selling price

Both options start from a cost of 1,000 currency units.

20% margin

Selling price
1,250 currency units
Gross profit
250 currency units
Try these inputs

25% margin

Selling price
1,333.333 currency units
Gross profit
333.333 currency units
Try these inputs

A 25% margin requires dividing cost by 0.75. Adding 25% to cost instead gives a 20% margin; choose either target margin or markup rather than applying both.

Fixed comparison in metric units. Values are illustrative unless linked to a recorded project; changing the calculator above does not change this example.

Formula

Selling price = cost ÷ (1 − margin ÷ 100). Gross profit = selling price − cost.

Worked example

Illustrative values match Reset example and stay fixed when you edit the calculator.

Starting-value worked example

Total cost
1,000 currency units
Target gross margin
20 %

Selling price: 1,250 currency units

Follow the calculation

  1. Selling price = 1,000 ÷ (1 − 20 ÷ 100) = 1,250.
  2. Gross profit = selling price − 1,000. Margin uses selling price as the denominator.

Reviewed 19 October 2026. How calculations are checked · Report a correction

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PRACTICAL READING

Understand the inputs. Check the order.

Measurement methods and worked examples to use alongside this calculator.

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