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What's My Margin?

Questions & assumptions

Indicative trading calculations, not VAT or accounting advice. Check VAT treatment and figures with a qualified accountant before making pricing decisions.

Margin is profit as a share of the selling price. Markup is profit as a share of cost.

Buying at £15 and wanting a 20% margin means selling at £15 ÷ 0.8 = £18.75 (profit £3.75 is 20% of £18.75). A 20% markup gives £15 × 1.2 = £18, which is only a 16.7% margin.