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.
Selling price before VAT
- 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 price | Markup 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.