Margin and markup calculator

Enter cost and price to get margin and markup as percentages, or start from the margin or markup you want and find the right selling price, including VAT.

-margin on price
-markup on cost
-profit per unit
-price incl. VAT

Free calculator by CassaChiara · payment schedule and cash forecast from Italian e-invoices

Margin and markup are not the same

Markup is calculated on cost: buy at €60, sell at €100, the markup is 40 ÷ 60 = 66.7%. Margin is calculated on the selling price: the same €40 profit is 40 ÷ 100 = 40% of the price.

The most common mistake is applying the margin you want to the cost. If you want a 40% margin and add 40% to the cost, you sell at €84, not €100, and the real margin drops to 28.6%.

The formulas

Conversion table

Markup on costMargin on price
10%9.1%
20%16.7%
25%20.0%
30%23.1%
40%28.6%
50%33.3%
60%37.5%
80%44.4%
100%50.0%
150%60.0%
200%66.7%

Always compare cost and price before VAT: VAT collected is not profit, it goes to the State. To extract it, use the VAT calculator.

Margin is not enough: you need cash

You can profit on every sale and still run out of cash if clients pay late. CassaChiara reads Italian e-invoices and shows your 90-day cash forecast and who is late.

Try it free with your invoices See pricing

Frequently asked questions

How do I calculate margin as a percentage?

Subtract cost from the selling price and divide by the price: (100 − 60) ÷ 100 = 40%.

How do I calculate markup?

Subtract cost from the price and divide by the cost: (100 − 60) ÷ 60 = 66.7%.

What price gives a 30% margin?

Divide the cost by 0.70. With a €70 cost the price is €100.

Is the data I enter sent anywhere?

No: the calculation runs in your browser.

More guidesFree calculators for your websiteAll free toolsItalian VAT calculatorItalian withholding tax calculatorCash-flow forecastDownload invoices from the cassetto fiscalePayment reminder templates90-day cash-flow forecastPayment schedule from Italian e-invoicesSupplier IBAN change fraudOpen a P7M file online for freeCassaChiara for accounting firms