Profit Margin and Markup Calculator
Calculate gross profit, profit margin and markup from cost and selling price. Compare margin with markup using the free WaliERP profit margin calculator.
Start with one unit
Use Saudi riyals for both cost and selling price, with VAT excluded from both amounts.
Calculations run only in your browser. Your figures are neither saved nor sent to us.
Results per unit
Gross profit
SAR
Selling price minus cost.
Profit margin
Profit as a share of selling price.
Markup
Profit as a share of cost.
A percentage is undefined when its denominator is zero: selling price for margin, or cost for markup.
Selling price is below cost. The negative amount represents a gross loss per unit.
Three numbers, three different questions
Gross profit
Gross profit = selling price − cost
Selling price minus cost.
Profit margin
Profit margin = (gross profit ÷ selling price) × 100
Profit as a share of selling price.
Markup
Markup = (gross profit ÷ cost) × 100
Profit as a share of cost.
An educational tool for gross profit per unit. Results exclude VAT, operating expenses, interest and other items; they do not represent net profit or a pricing recommendation. Figures are rounded to two decimal places.
Using the tool and understanding your results
Find the profit on a product and see how it compares with its price and cost. Enter unit cost and selling price to calculate gross profit, profit margin and markup together, then compare the figures when reviewing a price.
How do I calculate profit margin from cost and selling price?
Subtract unit cost from selling price to find gross profit. Divide that profit by selling price and multiply by 100. A product costing SAR 80 and selling for SAR 100 has SAR 20 gross profit and a 20% margin.
What is the difference between margin and markup?
Margin divides profit by selling price; markup divides it by cost. With an SAR 80 cost and SAR 100 selling price, margin is 20% and markup is 25%. The different denominator produces the different percentage.
Does this show the net profit of my business?
It shows gross profit per unit using the cost and price you enter. Business net profit also includes operating expenses, financing, zakat and tax, and other period items. Use the profit analysis calculator to follow the simplified income statement.