Profit Margin & Markup Calculator
Convert between margin and markup, work out selling price from cost, or find profit from any pair of inputs. Universal — works for any currency.
How to use
- 1
Pick the mode that matches the numbers you already have. Most common: cost + target margin → find selling price.
- 2
Enter the numbers. Cost is what you pay per unit. Selling price is what the customer pays. Margin is profit as a % of selling price. Markup is profit as a % of cost.
- 3
The calculator shows the missing two values plus profit per unit.
- 4
Quick reference: 50% markup = 33.3% margin. 100% markup = 50% margin. 200% markup = 66.7% margin. Margin can never go above 100%.
Frequently asked questions
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. Buy something for AED 100, sell for AED 150 — you have a AED 50 profit. Margin is 50/150 = 33.3%. Markup is 50/100 = 50%. They describe the same trade in two ways.
Because markup is easier to calculate at the cash register. 'Cost × 1.5' is faster than working backwards from a 33% margin. But financiers and accountants prefer margin because it tells you what fraction of every revenue dollar is profit — the bottom-line health of the business.
Hugely variable. Fashion: 50-70% margin. Electronics: 5-15% margin. Restaurants: 60-70% margin on food, 70-85% on drinks. Pharmacy: 15-25% on prescription, 40-60% on cosmetics. Always check your specific category.
No. Margin is profit ÷ selling price, and profit can never exceed selling price (otherwise cost would be negative). The maximum theoretical margin is 99.99% — meaning the cost is almost nothing. Markup, however, can be 500%, 1000%, or higher.
Selling price = cost ÷ (1 − margin %). For AED 100 cost and 40% target margin: 100 ÷ (1 − 0.40) = 100 ÷ 0.60 = AED 166.67. The calculator's 'cost + target margin' mode does this for you.
Cost-plus pricing (cost + target margin) is the easiest but rarely optimal. Value-based pricing (charge what the customer will pay) usually generates more margin. Use cost-plus as a floor — never sell below it. Use value-based to find the ceiling.
Related tools
Source: Standard accounting formulae · Last verified 2026-06. This tool provides estimates only and is not legal, tax or financial advice. Always verify your specific situation with the relevant UAE authority or a licensed advisor before taking action.