Illustrative estimate. Check the rate and scheme eligibility for your transaction. No amounts are sent by this calculator.
Use comparable prices
Enter the selling price and the associated cost using a consistent tax basis. Avoid comparing a VAT-inclusive sale with a VAT-exclusive cost. Where VAT is recoverable, a business may work from VAT-exclusive figures; choose values that reflect your own accounting treatment.
Profit, margin and markup example
A product sold for £100 with a £60 cost produces £40 gross profit. Margin is £40 ÷ £100 = 40%. Markup is £40 ÷ £60 = 66.67%. The same cash profit produces different percentages because each measure uses a different denominator.
Formulas and zero values
Gross profit = selling price − cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100. A zero selling price makes margin undefined; a zero cost makes markup undefined. The calculator displays a dash for those ratios rather than inventing a percentage.
Gross profit is not take-home income
This calculation does not automatically deduct overheads, wages, delivery, returns, finance costs or taxes. Add costs deliberately when analysing a product. To hit a target margin m, an illustrative price is cost ÷ (1 − m), provided m is below 100%. A £60 cost at 40% margin needs a £100 price.
Quick answer
Can I use the result without saving an account?
Yes. Calculations run in your browser. Copy the figures into your own records; refreshing the page resets the inputs.
Keep learning
Educational information and estimates. These tools do not submit VAT returns or determine the treatment of a specific transaction.