How to Calculate Profit Margin

To price products for sale you need to take the total total costs you paid for the product and apply a profit margin percentage. This percentage then becomes your profit margin.

Profit margins vary for each business sector, there is no average profit margin as such but typical profit margins vary from 15% to 60%.

To use our Price Markup Calculator, enter your desired Profit Margin percentage, sales tax/VAT rate (if applicable, if not enter 0) and the wholesale cost of the product you want to sell. You'll then be shown a retail price including VAT and your profit margin.

Try the Price Markup calculator for yourself (to the right on PC or below on a smartphone) to calculate Price Markup. The currency used in the calculator is not important, simply enter values in your local currency.

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