Free · Margin vs markup explained

Margin and markup calculator with price from cost

Turn cost into a selling price, or see the margin and markup behind a price you already charge.

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  • Stays in your browser
  • Sources named below

What do you know?

What it costs you to buy or make, before VAT.

Margin and markup side by side

A margin ofneeds a markup ofA markup ofgives a margin of
10%11.11%10%9.09%
20%25.00%20%16.67%
25%33.33%25%20.00%
30%42.86%30%23.08%
40%66.67%40%28.57%
50%100.00%50%33.33%

Result

Enter your cost and one more number. The price, profit, margin and markup appear here.

How it is calculated

The working

  • Profit = selling price - cost.
  • Markup % = profit / cost x 100. Margin % = profit / selling price x 100.
  • Price from a markup = cost x (1 + markup%). Price from a margin = cost / (1 - margin%). A margin can never reach 100%.
  • Convert: markup = margin / (1 - margin). Margin = markup / (1 + markup). A 20% margin is a 25% markup.
  • Work with prices before VAT. The VAT you collect is not your income, so it is shown separately as a price-with-VAT line.

Sources

  1. Standard accounting definitions of gross margin and markup; no regulatory source applies.

Rules and rates change. Always confirm against the current official text.

Rules this tool applies, last read against the official text on 12 November 2026
  • The standard rate of VAT is 5%. (Article 3, read 12 November 2026.) Later amendments were not reviewed.

This is a reading of the published text, not legal advice, and no adviser or authority has signed these rules off.

Free lessons that explain it

From the free Zeyto Academy. No account needed.

See margin on real cost

Zeyto values stock by moving average, FIFO or LIFO cost, so the cost behind every sale comes from your purchases and not from a guess.

Try Zeyto freeSee the live demoSee Pricing and Margin Calculator Suite for UAE Sellers: Cost-Plus, Discounts, Bundles, VAT, AED 89

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Cite this tool

Page
Margin and markup calculator
Publisher
Zeyto (Emeron Infospace FZE)
Address
https://zeyto.app/tools/margin-markup-calculator
Zeyto. "Margin and markup calculator", free tool, Emeron Infospace FZE. https://zeyto.app/tools/margin-markup-calculator

You are welcome to link to this page. Please do not pass the results on as advice: each page says what it covers and what it leaves out.

Questions

Common questions

What is the difference between margin and markup?
Both describe profit, but against different bases. Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. Cost 80 and price 100 gives profit 20, a markup of 25% and a margin of 20%.
Which should I use to set prices?
Use whichever you can control. Many owners think in margin because it shows how much of each dirham of sales is kept. Many price lists are built on cost plus markup. The calculator converts between them so both views agree.
Should VAT be included?
No. Work out margin on the price before VAT. VAT is collected for the Federal Tax Authority and is not part of your profit. The calculator adds a price including 5% VAT for the shelf or quotation.
Why does a 50% markup not give a 50% margin?
Because the two use different bases. A 50% markup on a cost of 100 gives a price of 150 and profit of 50, which is a 33.3% margin.
Does this include my other costs?
No. It only knows the cost you enter. Rent, wages and other overheads need to be covered by the total profit across all sales. The break-even calculator shows how many sales that takes.

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