Profit margin and markup calculator
Know the selling price that earns the margin you want, and the difference between margin and markup.
Selling price at your markup
Margin is not markup
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. Mixing them up makes shops underprice every item. Remember to add VAT separately with the VAT calculator, and check your fixed costs in the break-even calculator.
Common questions
Which is better to track?
Margin, because it compares profit with what customers actually pay.
Does this include VAT?
No. Work out the price first, then add VAT.
What is a good margin?
It depends on the business. Groceries run thin, services higher.
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Ask for a books checkEstimates for guidance only, not tax advice. Rates were checked in October 2026 and can change. Confirm with KRA or a qualified professional.