Profit margin and selling price
Enter the cost and a target margin, a markup or the price you charge. You get the selling price, profit, margin, markup and the price with 15 % VAT.
Result
- Selling price before VAT
- —
How it works
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. An item that costs SAR 75 and sells for SAR 100 has a SAR 25 profit: a 25 % margin and a 33.33 % markup.
How do you find a price from a target margin?
Divide the cost by one minus the margin. For a 25 % margin on a cost of SAR 75, the price is 75 ÷ 0.75 = SAR 100. Adding 25 % to the cost gives SAR 93.75, which is only a 20 % margin.
Should margin include VAT?
No. Work out cost, price and margin before VAT, because VAT is collected for ZATCA. The calculator then adds 15 % VAT to show the price your customer pays.
Questions
Can a margin be 100 % or more?
No. A margin is a share of the price, so it stays below 100 %. A markup has no upper limit.
What cost should I use?
What one unit costs you to buy or make, before VAT: the purchase price plus freight, duties and other landed costs.
Does DynamoOS show margins on sales?
Yes. DynamoOS keeps the cost of each item from purchases and stock, so you see the margin of what you sell.
Know your margin on every sale
Stock, purchases, sales and accounts share the same numbers in DynamoOS. Try every app free for 14 days, no card needed.