Ad slot · directly below the tool, never above it
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. The same sale gives a lower margin than markup.
CostAED 75
Selling priceAED 100
Profit (100 − 75)AED 25
Margin (25 ÷ 100)25%
Markup (25 ÷ 75)33.33%
A common mistake
Adding 25% to the cost to "get a 25% margin". A 25% markup on AED 75 gives AED 93.75, which is a 20% margin, not 25%. For a 25% margin the price must be 75 ÷ (1 − 0.25) = AED 100.
Questions people ask
Is what I type stored or sent anywhere?
No. The sum runs in your browser and nothing is sent to us.
Is VAT included?
No. Use the price and cost before VAT, so the VAT does not distort your profit.
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Sources
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General information and estimates, not tax, legal or financial advice.