Margin Calculator
Margin, markup and profit from your cost and selling price – or the price you need for a target margin or markup. Works with prices with or without VAT.
What do you want to calculate?
Enter both values to see the result.
Margin vs markup
Margin and markup describe the same profit from two different angles. Margin is profit as a share of the selling price. Markup is profit as a share of the cost. Mixing them up is one of the most common pricing mistakes: a "50% markup" is only a 33% margin.
| Markup | Margin | Break-even ROAS |
|---|---|---|
| 25% | 20.0% | 5.00 |
| 50% | 33.3% | 3.00 |
| 66.7% | 40.0% | 2.50 |
| 100% | 50.0% | 2.00 |
| 200% | 66.7% | 1.50 |
Break-even ROAS here assumes conversion values without VAT and no other variable costs – see the break-even ROAS calculator for the full picture.
Formulas
Worked examples
1. Margin from cost and price
A product costs €60 and sells for €100 without VAT.
2. Price for a target margin
The same €60 product should earn a 40% margin.
3. Margin from a price with VAT
The product is listed at €120 including 20% VAT.
Calculating the margin from €120 directly would show 50% – a 10-point overstatement that carries straight into a too-low target ROAS.
Frequently asked questions
What is the difference between margin and markup?
Both use the same profit, but margin divides it by the selling price and markup divides it by the cost. A product bought for €60 and sold for €100 has a 40% margin and a 66.7% markup.
How do I calculate the price for a target margin?
Divide the cost by (1 − margin). For a €60 cost and a 40% target margin: 60 ÷ 0.6 = €100.
Should margin be calculated with or without VAT?
Without VAT. For a VAT-registered business, VAT collected from customers is passed on to the state, so it is not part of the revenue that covers costs.
Is this gross margin or net margin?
Gross margin on the product: price minus the cost you enter. For advertising decisions, also subtract variable costs per order such as shipping and payment fees – include them in the cost field if you want them in the result.