Calculate your profit from cost and selling price, or work backwards from a target profit, margin, or markup to find the selling price you need.
Cost price
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Selling price
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Profit
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Profit margin
As % of selling price
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Markup
As % of cost
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Profit margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 50% markup on a £10 cost gives a £15 selling price — but the margin is only 33.3%, not 50%. Retailers typically talk in margin; manufacturers often talk in markup.
Gross profit is revenue minus the direct cost of the item (what you paid for it). Net profit is what remains after all other expenses: packaging, shipping, marketplace fees, advertising, and overheads. This calculator shows gross profit — your actual take-home will be lower.
It depends on the industry. Grocery retail often runs at 1–3% net margin. Software and digital products can reach 70–90% gross margin. Physical goods sold online typically aim for 30–50% gross margin to leave room for fees, returns, and overheads.
If you sell on Amazon or eBay, factor in their fees (typically 8–15% of the sale price) before celebrating your margin. A product with a 30% gross margin on a £20 sale leaves only £6 — Amazon taking 12% (£2.40) cuts that to £3.60, a 18% effective margin.
Ending prices in .99 or .95 increases perceived value. But rounding up slightly — from £9.99 to £10.49 — can add meaningful margin with minimal buyer resistance. A/B test your prices if you sell online; even small changes to pricing compound significantly at scale.
To find your break-even point, divide your fixed costs by your gross profit per unit. If you have £2,000 in monthly overheads and make £8 gross profit per item sold, you need to sell 250 units per month just to cover costs. Every sale beyond that is net profit.
Calculate profit from a cost and selling price, or work backwards — enter a target profit amount, margin %, or markup % to find the selling price you need to charge.
Cost £10, sell £25
Profit: £15 | Margin: 60.0% | Markup: 150.0%
Cost £30, target profit £20
Sell at: £50.00 | Margin: 40.0% | Markup: 66.7%
Cost £30, target margin 40%
Sell at: £50.00 | Profit: £20.00 | Markup: 66.7%
Cost £30, target markup 66.7%
Sell at: £50.00 | Profit: £20.00 | Margin: 40.0%
Profit, margin, and markup on a £30 cost sold for £50
Profit: £20 | Margin: 40% | Markup: 66.7%
Gross profit margin is one of the most closely watched metrics in business. Warren Buffett uses it as a key filter when evaluating companies — businesses with consistently high and stable gross margins often have strong 'economic moats' that protect them from competition. A gross margin above 40% is generally considered strong across most industries.
Profit is the money left after subtracting the costs of making or buying something from its selling price. Enter revenue and every relevant cost on the same basis, such as per item or for the whole order. A positive result means the sale covers those costs; a negative result means the price is below the costs you entered.
Include direct costs such as materials, stock, packaging, delivery, labour, marketplace fees, and payment charges when they apply. Fixed overheads such as rent or software can be allocated across the expected number of sales if you want a fuller estimate. Keep one-off setup costs separate when comparing the profitability of individual products.
No. Profit is an accounting measure based on the income and costs included in the calculation. It does not account for unpaid invoices, tax timing, loan repayments, stock purchased in advance, or money you withdraw from the business. Use the result to price and compare work, then review cash flow and tax separately.
Calculate each product with the same cost categories and time period, then compare both profit per sale and expected sales volume. A lower-profit item may contribute more overall if it sells often, while a high-profit item may tie up cash or take longer to fulfil. Test the result with conservative costs and realistic demand before changing your range.