Profit Margin Calculator UK

Profit Margin Calculator UK

Calculate Profit Margin Business Profit
£
The cost to produce or purchase the item.
£
The price you sell the item for.
Profit Margin: The percentage of revenue that turns into profit. Higher is better.
Example Cost £50, Sell £75 → £25 profit, 33.3% margin, 50% markup
Profit Margin Analysis
Enter your cost and selling price, then click Calculate Profit Margin.

What Is a Profit Margin Calculator?

A profit margin calculator helps you calculate your profit margins, gross profit and markup percentages. This profit margin calculator UK is essential for UK businesses to understand their profitability.

How to Use the Profit Margin Calculator

Enter your cost price and selling price. Click Calculate Profit Margin to see your gross profit, profit margin percentage and markup percentage.

How Profit Margin Is Calculated

Gross Profit = Selling Price − Cost Price
Profit Margin = (Gross Profit ÷ Selling Price) × 100
Markup = (Gross Profit ÷ Cost Price) × 100

Profit Margin Example

Example: Cost £50, Selling Price £75

  • Gross Profit: £75 − £50 = £25
  • Profit Margin: (£25 ÷ £75) × 100 = 33.3%
  • Markup: (£25 ÷ £50) × 100 = 50%

Understanding Profit Margins

Average UK Profit Margins by Industry

Profit Margin vs Markup

How to Improve Profit Margins

Common Profit Margin Mistakes

Important: This calculator provides estimates only. Actual profit margins may vary based on additional costs, VAT and other expenses. Consult a business advisor for accurate calculations.

Important Assumptions and Limitations

Frequently Asked Questions

Abdul Wahid, author and financial content specialist at Fast Calculator
Written and reviewed by Abdul Wahid
Financial content specialist with a focus on UK business and personal finance.

For business planning, visit our Business Calculators. For pricing, try our Discount Calculator UK.