Profit margin calculator
Enter your cost and your selling price, or the margin you want, and get your profit, markup, gross margin and selling price including VAT.
- Selling price before tax
- 150.00 MAD
- Profit
- 50.00 MAD
- Markup (profit ÷ cost)
- 50%
- Gross margin (profit ÷ selling price)
- 33.33%
- Multiplier (price ÷ cost)
- × 1.5
- Selling price incl. 20% VAT
- 180.00 MAD
Examples in dirhams
Cost before tax: 100.00 MAD
| Selling price before tax | Profit | Markup (profit ÷ cost) | Gross margin (profit ÷ selling price) |
|---|---|---|---|
| 120.00 MAD | 20.00 MAD | 20% | 16.67% |
| 150.00 MAD | 50.00 MAD | 50% | 33.33% |
| 200.00 MAD | 100.00 MAD | 100% | 50% |
| 300.00 MAD | 200.00 MAD | 200% | 66.67% |
The formulas
- 1
Profit
Selling price before tax − cost before tax.
- 2
Markup
Profit ÷ cost × 100. Bought 100, sold 150: 50%.
- 3
Gross margin
Profit ÷ selling price × 100. Bought 100, sold 150: 33.33%.
- 4
Selling price from a rate
From a markup: cost × (1 + markup). From a gross margin: cost ÷ (1 − gross margin).
What is the difference between markup and gross margin?
Both use the same profit. The markup compares it to the cost, the gross margin to the selling price: a product bought 100 and sold 150 has a 50% markup and a 33.33% gross margin.
Should I calculate the margin before or after tax?
Before tax (HT): VAT is collected for the state and is not part of your profit. The calculator also shows the price including 20% VAT for your quotes.
Is the calculator free?
Yes, free and without sign-up. It works right in your browser.
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