Profit Margin & Markup Calculator
Find your profit margin and markup, or work out the right selling price from your cost. Built for traders, retailers, manufacturers and online sellers.
Results are estimates for planning. Confirm final figures with your accountant or the Nigeria Revenue Service (NRS). Everything runs in your browser and nothing you enter is stored by us.
Know your margin on every product, automatically, as you sell.
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What This Calculator Does
- Shows profit, margin and markup when you know your cost and selling price
- Gives the selling price you need to reach a target margin
- Gives the selling price for any markup percentage
- Works out total profit for the number of units you sell
- Warns you when you are selling below cost
- Explains the difference between margin and markup
Margin vs Markup
Margin is profit divided by the selling price. Markup is profit divided by the cost. If you buy at ₦8,000 and sell at ₦12,000, your profit is ₦4,000, your markup is 50% and your margin is 33.3%.
Pricing for a Target Margin
To reach a target margin, divide your cost by one minus the margin. For a 30% margin on an item that costs ₦8,000, the price is ₦8,000 divided by 0.7, which is about ₦11,429.
Frequently Asked Questions
Subtract the cost from the selling price to get profit, divide the profit by the selling price, then multiply by 100. That percentage is your profit margin.
Margin is based on the selling price and markup is based on the cost. The same profit always gives a higher markup percentage than margin percentage.
It depends on the sector. Fast-moving consumer goods often run on thin margins of around 5% to 15%, while services and specialist products can earn much more. Compare with others in your trade.
Yes. Include everything it costs to get the product to the customer, such as transport, packaging and payment charges, so your margin reflects reality.
Yes. Inventory and point of sale systems calculate the margin on every sale and show your most and least profitable products.
Know Your Margin on Every Sale
Lifehampers builds inventory and POS systems that track stock, cost and profit for every product as you sell.