Margin & markup calculator
This margin and markup calculator instantly turns your cost and selling price into three key figures: margin as a percentage of the selling price, markup relative to the cost, and profit in CZK. It is built for e-shops, retailers and sole traders setting prices, checking product profitability or comparing suppliers. Margin and markup are often confused — here you see both at once.
How margin and markup are calculated
You enter two numbers: the cost price (what you paid for the goods) and the selling price. From these the tool derives the profit and two different percentage indicators that differ only in their denominator.
Profit is simply the selling price minus the cost. Margin expresses what share of the selling price is profit — so it is divided by the selling price. Markup instead shows by how many percent you raised the cost — so it is divided by the cost. For the same item, markup is always a higher number than margin.
profit = selling − cost
margin % = profit ÷ selling × 100
markup % = profit ÷ cost × 100
- Subtract the cost from the selling price to get profit in CZK.
- Divide profit by the selling price and multiply by 100 → margin.
- Divide profit by the cost and multiply by 100 → markup.
Worked example step by step
You buy goods for 100 CZK and sell them for 150 CZK. Prices are taken without VAT so the figures show pure trading profitability.
| Step | Item | Calculation | Amount |
|---|---|---|---|
| 1 | Profit | 150 − 100 | 50 CZK |
| 2 | Margin | 50 ÷ 150 × 100 | 33.3 % |
| 3 | Markup | 50 ÷ 100 × 100 | 50.0 % |
| 4 | Result | margin / markup / profit | 33.3 % / 50.0 % / 50 CZK |
The same deal yields a margin of 33.3 % but a markup of 50.0 %. The difference is not an error — each indicator is calculated from a different base.
What affects the result
- Cost price — the cheaper you buy, the higher both margin and markup at the same selling price.
- Selling price — the main profitability lever; a small increase raises the margin sharply.
- Whether you use prices with or without VAT — for trading margin always compare prices without VAT.
- Hidden costs — shipping, packaging, platform fees or returns reduce the real margin compared with one based on cost alone.
When it is useful and what to watch out for
The calculator is ideal for quickly building a price list, comparing item profitability and checking whether a supplier's discount makes sense. However, it only computes the difference between the two prices you enter — it does not include VAT, operating costs, wages, shipping or income tax. The real net profit of the business is therefore lower than the gross per-unit profit shown here. Treat the result as an indicative basis for pricing, not an accounting output.
⚠️ Indicative calculation, rates current for 2026. Not a substitute for an accountant or tax advisor — verify important decisions with the Czech Financial Administration.
FAQ
What is the margin and markup for a 100 CZK cost and 150 CZK selling price?
Profit is 50 CZK, margin 33.3 % (50 ÷ 150) and markup 50.0 % (50 ÷ 100). The same deal has a lower margin than markup because each is calculated from a different base.
What is the difference between margin and markup?
Margin expresses profit as a share of the selling price (divided by selling price), markup as a share of the cost (divided by cost). Markup is therefore always a higher percentage than margin for the same item.
How do I get margin from markup?
Margin = markup ÷ (100 + markup) × 100. For example, a 50 % markup equals a margin of 50 ÷ 150 × 100 = 33.3 %.
Does the calculator include VAT?
No, it works with the prices exactly as you enter them. For trading margin enter prices without VAT; calculate VAT separately in the VAT calculator.
Can the margin exceed 100 %?
Margin cannot — it never exceeds 100 %, because profit is always less than the selling price. Markup, however, can exceed 100 % if you sell for more than double the cost.
How do I find the selling price from a target margin?
Selling price = cost ÷ (1 − margin/100). With a 100 CZK cost and a 30 % target margin, the selling price is 100 ÷ 0.7 = 142.86 CZK.
Does profit include other costs?
No. Profit here is only the difference between selling and cost price. Shipping, packaging, platform fees, wages and taxes are not deducted — real net profit is usually lower.
What does a negative margin mean?
It means you are selling below cost — the selling price is lower than the cost and you lose money on every unit. The calculator then shows a negative margin and profit.
Sources & legislation
📅 Last updated: 11 July 2026