Margin calculator: what you really earn on each sale
Enter what it costs you and what you sell it for: we show you the real margin, the markup on cost and what is left if you give a discount. Free, no sign-up, and nothing leaves your browser.
What price do I need to charge?
Watch out: adding 30% to the cost gives 910 €, and at that price the real margin is only 23.1%.
Margin and markup are not the same
Margin is the share of the price you keep: (price − cost) ÷ price. Markup is what you add on top of the cost: (price − cost) ÷ cost. For the same price, markup is always higher than margin, which is why mixing them up means earning less than you think.
With a cost of €100, adding 30% means selling at €130, and your margin is 23.1%. To really make a 30% margin, you need to sell at €142.86.
| Cost | Price | Margin | Markup |
|---|---|---|---|
| 100 € | 130 € | 23.1% | 30% |
| 100 € | 142.86 € | 30% | 42.9% |
| 100 € | 150 € | 33.3% | 50% |
| 100 € | 200 € | 50% | 100% |
What a discount eats up
If you sell something that costs you €70 for €100 and give a 10% discount, your profit drops from €30 to €20: a third less for a discount of only 10%. To earn the same as before you would need to sell 50% more. That is why it pays to know the margin before promising a discount, not after.
Frequently asked questions
How is profit margin calculated?+
Subtract the cost from the selling price and divide the result by the price. If you sell for €1,000 something that costs you €700, you make €300 and your margin is 300 ÷ 1,000 = 30%.
How do I work out the price for a given margin?+
Divide the cost by one minus the margin you want. To make 30% on a cost of €700: 700 ÷ 0.70 = €1,000.
Is margin calculated with or without VAT?+
Without VAT. VAT is not yours: you charge it to the client and pay it to the tax authority. Enter cost and price without it.
Is what I type stored anywhere?+
No. The calculator runs in your browser and sends no data anywhere.
Plensity shows you the margin on every line while you prepare the offer
Cost, price and margin as you go, before the offer reaches the client (Business plan). And the client signs on their phone.