Margin % = profit / selling price. Markup % = profit / cost. E.g. 50→80: margin 37.5%, markup 60%.

VAT included or excluded?

Always use prices excluding VAT so tax does not distort the margin.

Margin & Markup Calculator

Calculate a product's gross profit in euros, profit margin % and markup % from cost and selling price.

Cost price (excl. VAT): 50.00 €

Selling price (excl. VAT): 80.00 €

30.00 €

Gross profit

Gross profit €	30.00 €
Profit margin %	37.5 %
Markup %	60.0 %

ℹ️ Margin % is of the selling price, markup % is of the cost price. They are not the same number.

This margin and markup calculator works out a product's gross profit in euros, the profit margin percentage and the markup percentage from the cost and selling price excluding VAT. It clears up the difference between these two easily confused figures.

How the calculator works and what it’s for▾

How margin and markup are calculated

Gross profit in euros is simply the selling price minus the cost price. The profit margin percentage is that profit divided by the selling price.

Markup, on the other hand, is measured against the cost price: it shows how many percent has been added on top of the cost. That is why the two figures differ.

What you enter and what you get

Enter the cost price and the selling price, both excluding VAT. The result gives the gross profit in euros, the profit margin percentage and the markup percentage.

For example, if you buy an item for ten euros and sell it for twenty, the profit is ten euros, but the margin and the markup are different numbers because they are calculated from different bases.

Who it is for

The calculator is useful for entrepreneurs, retailers and online sellers who price products and want to ensure a sufficient margin before setting a selling price.

A common mistake

Margin is calculated from the selling price and markup from the cost price, so they are not the same number. Mixing them up easily leads to underpricing, so be sure which figure you mean.

🔄 Reviewed June 2026