Enter your item cost and target margin or markup to instantly calculate the selling price (RRP) you need to charge.
Item cost
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Selling price (RRP)
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Profit per unit
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Equivalent markup
As % of cost
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Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 50% margin on a £10 cost gives a £20 RRP. A 50% markup on a £10 cost gives only £15. Always clarify which one you mean when discussing pricing with suppliers or buyers.
RRP (Recommended Retail Price) is the price you suggest or intend to sell at. In practice, retailers and online platforms may discount below RRP. If you sell on Amazon with a 15% fee, factor that in before setting your target margin — your effective margin will be lower than what you set here.
Direct-to-consumer via your own website: aim for 50–70% margin. Wholesale to retailers: typically 40–60% margin (retailers then mark up further). Selling on marketplaces like Amazon or eBay: account for 8–15% platform fees, so aim for at least 40% gross margin to stay profitable.
If you know the RRP and want to find the implied margin, use the Profit Calculator instead. The Margin Calculator here works forward: given a cost and a target margin or markup, it tells you the price you need to charge.
Luxury goods: 70–90% margin. Fashion/apparel: 50–70%. Electronics: 10–30% (margins are tight, volume matters). Food and beverage: 60–70% for cafes, 3–8% for supermarkets. Software/SaaS: 70–90% gross margin. Knowing your industry benchmark helps you price competitively without leaving money on the table.
The margin this calculator shows is gross margin: it only accounts for the cost of the item itself. To find net margin, subtract all other costs: shipping, packaging, payment processing fees, storage, advertising, returns, and a share of your fixed overheads. Gross margin is a starting point, not your take-home.
Enter an item's cost price and your target margin or markup to find the selling price (RRP) you need to charge.
£10 cost at 50% margin
RRP: £20.00 | Profit: £10.00 | Markup: 100.0%
£10 cost at 100% markup
RRP: £20.00 | Profit: £10.00 | Margin: 50.0%
£25 cost at 40% margin
RRP: £41.67 | Profit: £16.67 | Markup: 66.7%
Find the selling price for a £15 item at 40% margin
RRP: £25.00 | Profit: £10.00 | Markup: 66.7%
A common confusion for small business owners: a 50% markup is not the same as a 50% margin. A 50% markup on a £10 cost gives a £15 price — but the margin is only 33.3%, because margin is profit as a percentage of the selling price. Understanding this difference is essential for pricing products correctly.
Profit margin is profit divided by selling price, multiplied by 100. For example, a £30 profit on a £100 sale is a 30% margin. This is different from markup, which divides profit by cost. Enter the figures from the same sale and make sure your selling price includes the revenue you actually receive.
There is no universal target. A sustainable margin depends on the industry, return rates, overheads, taxes, labour, growth plans, and the risk you take. Use this calculator to compare products or scenarios consistently rather than treating one percentage as a rule. A high margin can still produce little money if sales volume is low.
Yes. A target margin can be converted into a price when you know the total cost: selling price equals cost divided by one minus the target margin as a decimal. A 40% target margin on a £60 cost therefore starts at £100 before tax and other adjustments. Check market pricing and fees before publishing that price.
Margin divides profit by the selling price, while markup divides profit by the cost. The same sale therefore produces different percentages under the two methods. Label the measure you use in quotes, budgets, and product comparisons so a markup target is not mistaken for a margin target.