EzyTools

Profit Margin Calculator

Margin, markup and profit from cost and selling price — or the price that reaches a margin you target.

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Runs entirely in your browser. Nothing you enter is uploaded or stored on a server.

About this tool

Confusing margin with markup is the costliest pricing mistake because it is silent and repeats on every sale. A cost of 100 sold at 125 is a 25% markup but only a 20% margin — margin is taken against the selling price, markup against the cost. This calculator always shows both so one is never used in place of the other.

How to use

  1. 1Choose the mode: from a selling price, from a target margin, or from a markup.
  2. 2Enter the cost.
  3. 3Enter the selling price or the target percentage, depending on the mode.
  4. 4Read profit, margin and markup together.

When you need it

  • Pricing a new product to hit a target margin.
  • Reviewing an existing margin after a cost increase.
  • Converting a supplier markup into the margin you actually earn.
  • Checking that a planned discount does not wipe out the margin.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit divided by the selling price; markup is profit divided by the cost. For the same sale the markup is always the larger number, and the two cannot be swapped.

How do I price for a 30% margin?

Choose "from target margin" and enter the cost and 30. The price is the cost divided by 0.70, so a cost of 100 needs a price of 142.86 — not 130.

Why can a margin never reach 100%?

Because margin is measured against the selling price. A 100% margin would mean the profit is the entire price, which requires a cost of zero. As long as there is a cost, the margin stays below 100% however high the price goes.

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