Free tool

Profit Margin Calculator

Gross margin, net margin and markup from one sale, side by side — because a 50% markup and a 50% margin are very different things.

Headline figure

£
£

Direct costs: stock, materials, subcontractors, hosting.

£

Share of rent, salaries, software and admin per sale.

Gross profit margin

62.5%

Gross profit
£75.00
Net profit
£50.00

Gross margin

62.5%

Net margin

41.7%

Markup

166.7%

Break-even price

£70.00

Margin is profit as a share of the price you charge; markup is profit as a share of what it cost you. A 50% markup on a £40 cost gives a £60 price — that's a 33% margin, not 50%. Getting the two mixed up is one of the quickest ways to underprice.

Gross margin, net margin and markup side by side, worked out from your selling price, direct costs and allocated overheads. Margin is profit as a share of the price; markup is profit as a share of the cost — confusing the two is one of the quickest ways to underprice a job.

Know your margins without the spreadsheet gymnastics

Margins slip quietly. These tools track cost, price and profit line by line — from our software directory.

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