Margin, markup and profit calculator
See what is actually left from one sale once purchase price, shipping, fees and discount are taken out.
Enter a selling price greater than zero.
Margin is measured against the selling price, markup against the purchase price. That is why the two figures are almost never the same.
| Price after discount, net | 123.14 |
|---|---|
| Price after discount, gross | 149.00 |
| Commission total | 0.00 |
| Total seller cost | 80.00 |
| Break-even price (net) | 80.00 |
Profit on: 10 431.40 100 4,314.05 1000 43,140.50
Margin versus markup — where the difference lies
Both numbers describe the same profit, only against a different base. Margin says what share of the selling price is profit. Markup says by how many percent the purchase price was raised.
Example: bought for 80 net, sold for 100 net. Profit is 20. Margin is 20 / 100 = 20%, markup is 20 / 80 = 25%. One transaction, two figures — so always say which one you mean.
Margin can never exceed 100%, because profit cannot be larger than the price. Markup has no such ceiling: buy at 10, sell at 50, and the markup is 400%.
How this calculator works
- Everything is computed in net amounts. For a VAT-registered seller the tax is a pass-through: input VAT is deducted from output VAT, so it does not change the profit.
- Commission can be charged on the gross price (what marketplaces do) or on the net price. The resulting fee is treated as a net cost, which assumes VAT on the intermediary’s invoice is deductible.
- Break-even is the lowest net price after discount at which profit reaches zero. It accounts for the percentage commission, which grows together with the price.
The results are provided for guidance only. Always verify figures before using them in official documents.