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Profit Margin & Pricing Calculator

Work out a selling price from your cost and a target margin or markup, or check the margin on a price you already charge. A 50% markup is only a 33.3% margin.

How the profit margin & pricing works

Formula. Price = cost ÷ (1 − margin). Margin = profit ÷ price. Markup = profit ÷ cost.

Example. An item costs 4.200. For a 35% margin: 4.200 ÷ 0.65 = 6.462. Profit is 2.262, which is a 53.8% markup.

Tip. Margin can never reach 100%, but markup can be any size. Suppliers often talk in markup while accountants report margin, so always check which one is meant.

Tools that help with this

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Zoho BooksAccounting & VAT invoicingVAT-ready invoices, expenses and reports, with Arabic and GCC tax support.Visit Zoho Books →QuickBooksAccounting softwareTrack sales, expenses and profit, and send invoices from your phone.Visit QuickBooks →

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