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Profit Margin & Markup Calculator

Find your profit margin and markup from cost and price, or work out the selling price you need for a target margin or markup.

What do you know?

SAR

What you pay to buy or make one unit.

SAR

Price before VAT.

Result

Enter your numbers to see the result instantly.

Margin or markup?

Margin is profit divided by the selling price. Markup is profit divided by cost. A 25% markup equals a 20% margin. Prices here are before VAT.

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. Cost 80 and price 100 gives profit 20, a margin of 20% and a markup of 25%.

How do I find the selling price for a 30% margin?

Divide the cost by 0.70. A cost of 70 gives a selling price of 100. Choose 'Cost and margin' in the calculator.

How do I find the selling price for a 30% markup?

Multiply the cost by 1.30. A cost of 100 gives a selling price of 130. Choose 'Cost and markup' in the calculator.

Should I use the price with or without VAT?

Without VAT. VAT is collected for the government, so it is not part of your profit or your cost of goods.

What is a good profit margin?

It depends on the business. Shops with fast sales often work with lower margins than services or custom products. Compare with similar businesses and include rent, salaries and other running costs.

Can the margin be negative?

Yes. If the selling price is below the cost you are selling at a loss, and the calculator shows a negative margin.