Profit Margin Calculator

COST PRICE (AED)

SELLING PRICE (AED)

PROFITABILITY METRICS

Net Profit AED 0.00

GROSS MARGIN 0.00%

MARKUP 0.00%

Margin is % of revenue that is profit.
Markup is % added to cost to reach price.

Understanding Profit Margins & Markup

In the competitive UAE e-commerce and retail market, understanding the difference between Profit Margin and Markup is critical for pricing strategies.

Gross Margin

The percentage of revenue that you keep as profit. (e.g., If you sell for 100 AED and cost is 70 AED, margin is 30%).

Margin = ((Price - Cost) / Price) * 100

Markup

The percentage added to the cost price to determine the selling price. (e.g., Cost 70 AED + 43% markup is about 100 AED).

Markup = ((Price - Cost) / Cost) * 100

Use this tool to ensuring your pricing covers all overheads (shipping, marketing, VAT) while maintaining a healthy bottom line.