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Cost and profit margin calculator

Calculate profit, margin and markup from cost and selling price. Find the price needed for your target profit margin.

Enter your details

Initial values are examples. Results update as you type.

Unit profit
400.00 TRY
Profit margin
40.00%
Markup
66.67%
Price for target margin
1,000.00 TRY

Cost and selling price must use the same VAT basis.

Formula and scope

Margin = (price − cost) / price × 100 · Target price = cost / (1 − target margin/100)

Margin is profit as a share of sales; markup is profit as a share of cost. Adding 50% to a cost of 100 gives a price of 150 and a 33.33% margin.

Use the same VAT basis for both amounts. Include packaging, labour and per-sale overhead in cost. This is not final business profit unless all overhead and taxes are included. A 100% target margin has no finite price for positive cost.

How to use this tool

  1. 01

    Enter cost and selling price on the same tax basis.

  2. 02

    Choose a target margin below 100%.

  3. 03

    Compare profit and target selling price.

Three worked examples

Amounts and rates are examples.

  1. 01

    Cost 600, price 1,000 → profit 400, margin 40%, markup 66.67%.

  2. 02

    Cost 100, price 150 → profit 50, margin 33.33%, markup 50%.

  3. 03

    Cost 200, price 160 → loss 40, margin −25%. A 20% target needs a price of 250.

Frequently asked questions

Are margin and markup the same?

No. Margin divides profit by sales; markup divides it by cost.

What if cost is zero?

Markup is undefined; positive sales give a 100% margin.

Does this include VAT?

Use the same tax basis for both inputs.

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