Useful places for this widget
- A pricing article comparing margin with markup.
- A business course with a worked example of direct costs.
- A trade association resource page for independent businesses.
Explain the two percentages before asking readers to choose
Gross margin divides gross profit by selling price. Markup divides gross profit by cost. For a target margin, price = cost ÷ (1 − margin/100). For markup, price = cost × (1 + markup/100). Enter costs and prices on the same tax basis. This is gross profit: fixed costs and personal tax are not deducted.
Worked example
A direct cost of 80 and a target margin of 20% give a price of 100 and gross profit of 20. A 20% markup instead gives a price of 96, profit of 16 and a margin of 16.67%. All figures are illustrative.
The widget shows a gross-profit calculation, not take-home profit or a recommended selling price. Use a consistent tax basis for costs and selling prices.
How the embedded version works
The calculation runs in the reader’s browser. The frame uses no cookies, browser storage, advertising scripts or analytics requests. It still loads its HTML, stylesheet and script from Offertje, so ordinary hosting requests are necessary. The link opens the full calculator in a new tab; that page has its own privacy information and standard site measurement.