Margin, Markup & VAT Calculator
Turn a cost price into a selling price the right way, set a margin or a markup, see the profit, and get the price with VAT.
Margin is profit as a share of the selling price; markup is profit as a share of the cost. They are not the same, a 25% margin is a 33.3% markup. Selling price shown ex and inc VAT.
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See OptiFlow Merchant →Estimate only, always confirm quantities with your merchant before ordering.
How to use the margin and markup calculator
Enter your cost price and the profit you want, as a margin or a markup, and the calculator returns the correct selling price, the VAT, and both margin and markup side by side. It removes the most common and most expensive pricing error on the trade counter.
Remember a 25% margin is a 33.3% markup: quoting the wrong one quietly eats your profit. Margin is profit as a share of the selling price; markup is profit as a share of the cost.
Frequently asked questions
What is the difference between margin and markup?
Markup is profit as a share of cost; margin is profit as a share of selling price. On a £100 cost sold for £125, the markup is 25% but the margin is 20%.
How do I calculate selling price from cost and margin?
Divide the cost by (1 minus the margin as a decimal). For a 25% margin on £100: £100 ÷ 0.75 = £133.33.
Is a 25% margin the same as a 25% markup?
No. A 25% margin equals a 33.3% markup, and a 25% markup equals a 20% margin.