Profit Margin Calculator

Margin (marża) is profit as a percentage of the selling price. Markup (narzut) is profit as a percentage of the cost. For a PLN 100 cost and PLN 150 price: margin = 33.3%, markup = 50%.

It varies by industry. Retail typically aims for 20–50%, services 40–70%, software 60–90%. Food and groceries often have margins of 5–15% due to high costs.

Selling price = cost ÷ (1 - margin%). Example: cost PLN 80, desired margin 40%. Price = PLN 80 ÷ (1 - 0.4) = PLN 80 ÷ 0.6 = PLN 133.33.

Selling price = cost × (1 + markup%). Example: cost PLN 80, markup 50%. Price = PLN 80 × 1.5 = PLN 120.

No. Margin is the ratio of profit to revenue, expressed as a percentage. Profit is the absolute monetary amount (revenue minus cost).

Gross margin excludes indirect costs and overheads — it is revenue minus direct cost of goods. Net margin subtracts all expenses including taxes. This calculator computes gross margin.

Because margin is profit divided by selling price, and profit cannot exceed the selling price. A margin of 100% would require zero cost, which is impossible in practice.

Yes. A 100% markup means you doubled your cost. A 200% markup means you charged three times the cost. Luxury goods and some service industries have markups well above 100%.

This calculator works with net (excluding VAT) prices. When setting prices, calculate VAT on top of the net price. VAT does not affect the margin — it is collected on behalf of the state.

Break-even margin is the minimum margin needed to cover all fixed and variable costs with zero profit. Below this margin, the business loses money on each sale.