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.