Profit margin
The difference between sale and cost divided by selling price. It shows what remains from each sales riyal before costs you have not included.
How much of each sale is profit? Calculate the margin and markup.
Enter selling price before VAT and the product’s accounting cost. Exclude recoverable VAT from cost; include nonrecoverable VAT where applicable. See the result without registering.
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Enter selling price before VAT and nonnegative accounting cost, with up to two decimal places. Exclude recoverable VAT from cost; include shipping, fees and nonrecoverable VAT where applicable. Selling price must be positive.
Enter amounts to see the result.
Amounts are rounded to two decimal places. This standalone tool does not save or post company accounting data.
Understand what the result means.
Markup
The same difference divided by cost. A 25% markup therefore does not mean a 25% margin.
Worked example
Cost SAR 80 and sale SAR 100: profit SAR 20, margin 20%, markup 25%. This is not the company’s net profit after all expenses.
Calculate a product margin here. Follow recorded sales and costs in Jabr.
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