Documents & Tools Updated 30 May 2026

Profit Margin Calculator

Work out the selling price and gross profit for a product based on its cost and your desired margin.

The Profit Margin Calculator helps you set the right selling price for a product given what it costs to make or buy. Find it in the sidebar under Calculators → Profit Margin.

Entering your figures

  1. Go to Calculators → Profit Margin.
  2. Enter the Cost Price — what the product costs you.
  3. Enter the Desired Profit Margin (%) — the margin percentage you want to achieve.

Results update instantly in the Results table below.

Reading the results

Result What it means
Selling Price The recommended retail price to hit your target margin
Gross Profit Selling Price minus Cost Price
Final Profit Margin Percentage The actual margin achieved at the calculated selling price

Including VAT

Tick Include VAT in Calculations (20%) to see two additional rows:

  • VAT Amount — the VAT portion of the selling price.
  • Net Profit — Gross Profit minus VAT Amount.

VAT is calculated at 20%, and the checkbox is unticked by default.

Tips

  • The selling price is adjusted to end in .99 (e.g. £4.99, £12.99).
  • Results are not saved — note them down or screenshot before leaving the page.

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