Profit Margin Calculator
Convert between cost, price, gross margin and markup — and see the price required to hit a target margin.
Gross margin
40.0%
Gross profit per unit
£80.00
Markup on cost
Margin and markup are not the same
66.7%
Price needed for a 45.0% margin
£218
Monthly gross profit
£8,000
Gross margin is profit as a share of price; markup is profit as a share of cost. Pricing from markup when you meant margin is the most common cause of quietly underpriced work.
This calculator runs in your browser. Nothing you enter is sent to us or stored, and results are illustrative guidance rather than accounting or financial advice.
The thinking behind it
How to Set an Hourly Rate You Can Defend — The billable-hours arithmetic most freelancers get wrong, and how to price from target income instead of guesswork.