Margin and markup calculator
Calculate margin, markup, and profit from purchase and selling prices. The calculator can also find a selling price from a target margin or markup.
For an accurate result, enter both prices on the same tax basis – either both excluding VAT or both including VAT.
Result
Enter the values to see the result instantly.
- Calculated price
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| Selling price | Profit | ||
|---|---|---|---|
What is the difference between margin and markup?
Margin and markup both express profit as a percentage, but they use different bases. Margin compares profit with the selling price, while markup compares it with the purchase price.
For example, if you buy an item for CZK 800 and sell it for CZK 1,200, the profit is CZK 400. The margin is 33.33%, but the markup is 50%. The same margin and markup percentage therefore do not produce the same selling price.
How is margin calculated?
Margin shows what share of the selling price is the difference between the selling and purchase prices.
Margin (%) = (selling price − purchase price) / selling price × 100
How is markup calculated?
Markup shows by what percentage the selling price is higher than the purchase price.
Markup (%) = (selling price − purchase price) / purchase price × 100
How do you calculate the selling price?
If you know the purchase price and target margin or markup, the calculator finds the selling price automatically. With a target margin, profit is a share of the final price; with markup, the percentage is added to the purchase price.