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FREE PROFIT MARGIN CALCULATOR Profit margin calculator.
Know what each job makes.

Enter what you charged and what the work cost to see profit, margin and markup, or start from cost and a target margin to get the price to quote.

Free. No signup. Runs in your browser.

Price and cost

What do you want to work out?
Team time at cost rate, freelancers, software and expenses for the job.

Runs in your browser. Nothing you enter is sent to Angelwood or stored on a server.

Result

Profit margin: 30.0%

Profit
£3,600.00
Profit margin
30.0%
Markup on cost
42.9%

How to use the calculator

  1. Choose what to work out: Margin from price, or Price for a target margin.
  2. For margin from price, enter the Revenue (price charged) and the Total cost of the work.
  3. For a target margin, enter the Total cost and the Target margin you want.
  4. Pick your currency and read the result: profit, profit margin and markup on cost, or the price to charge.

The formulas

  • Profit = revenue − cost.
  • Profit margin = profit ÷ revenue × 100.
  • Markup = profit ÷ cost × 100.
  • Price for a target margin = cost ÷ (1 − margin).

The tool runs entirely in your browser. Nothing you type is sent to Angelwood or saved on a server.

What counts as cost on a project

  • Team time at its cost rate (salary and overheads per hour), not the rate you bill.
  • Freelancers and subcontractors.
  • Software, licences, stock assets and expenses bought for the job.

Leaving out unbilled time is the most common reason projects look more profitable than they are.

Worked example

A project billed at £12,000 cost £8,400 in team time and freelancers. Profit is £3,600, the margin is 30% and the markup is 42.9%. To make a 35% margin on the same cost, the price would need to be £12,923.08.

DO IT IN ANGELWOOD

See project profitability as you work.

Angelwood’s profitability report compares time value, invoiced and collected amounts, expenses and labour cost for each project or client.

See profitability reports

GOOD QUESTIONS

Questions people ask.

Talk to us
What’s the difference between margin and markup?

Margin is profit as a share of the price; markup is profit as a share of the cost. A 25% markup gives a 20% margin. The markup calculator converts between them.

What is a good profit margin for an agency?

It varies by service, size and how costs are counted. Compare projects against each other and against your own target rather than a single benchmark.

Is gross margin the same as profit margin?

Gross margin only subtracts the direct costs of delivering the work. Net margin also subtracts overheads such as rent and admin salaries. This calculator works with whatever costs you enter.

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