Profit margin & selling price calculator

Enter the item cost and choose: add a markup on cost, target a margin on the selling price, or enter your selling price to see what you earn.

What do you want to calculate?

Selling price before VAT

125.00EGP
Selling price incl. VAT
142.50
Profit per unit
25.00
Markup on cost
25.00%
Margin on price
20.00%
Total profit for quantity
25.00

Profit here is before operating expenses (rent, salaries, shipping). VAT is not profit: it is collected from the customer and paid to the tax authority.

Markup vs margin

An item costing EGP 100 sold for 125: profit 25.
Markup = 25 ÷ 100 = 25%.
Margin = 25 ÷ 125 = 20%.
Same profit, two different percentages. The classic mistake: wanting a 25% margin and adding 25% to cost, which gives only 20%.

Formulas

Price from markup = cost × (1 + markup).
Price from target margin = cost ÷ (1 − margin). Example: cost 100 at 25% margin = 100 ÷ 0.75 = 133.33.

Quick table: for a target margin, what markup do I need?

Target margin on priceMarkup on cost
10%11.11%
15%17.65%
20%25.00%
25%33.33%
30%42.86%
40%66.67%
50%100.00%

FAQ

What is the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. Cost 100 and price 125: markup 25%, margin 20%.

How do I price for a 30% margin?

Divide cost by 0.70. A cost of 70 ÷ 0.70 = 100, and the profit of 30 is 30% of the price.

Should profit be calculated before or after VAT?

Before. VAT is collected from the customer and paid to the tax authority. The calculator shows the VAT-inclusive price separately.

Does the software calculate profit per item?

Yes. EA Core tracks average cost from purchases and reports profit per invoice and per item.

Know your real profit on every item

EA Core calculates cost from purchases automatically and shows profit per invoice, item and customer.

Book a free demo

We show you the program on an example from your business in about 20 minutes, at your place or online. No commitment.