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Profit Margin
Calculate your gross margin, net margin and markup rate.
Results
A margin rate of 30–50% is typical for retail in Morocco.
📐 Margin and margin rate
Margin = selling price − cost price
Markup on cost = (margin ÷ cost price) × 100
Margin on sales = (margin ÷ selling price) × 100
Markup on cost = (margin ÷ cost price) × 100
Margin on sales = (margin ÷ selling price) × 100
📊 Markup vs margin
| Cost price | Selling price | Markup on cost | Margin on sales |
|---|---|---|---|
| 100 | 150 | 50% | 33.3% |
| 200 | 250 | 25% | 20% |
| 80 | 120 | 50% | 33.3% |
💼 Margin scenarios
Buy at 400 MAD, sell at 560 MAD
Margin = 160 MAD, markup = 40%, margin on sales = 28.6%.
Set price for 30% markup on a 500 MAD cost
Selling price = 500 × 1.30 = 650 MAD.
💡 Practical tips
- Do not confuse markup on cost with margin on sales.
- Include VAT and other costs before setting your real margin.
- The margin must cover fixed costs and leave a net profit.
⚠️ Limits and disclaimer
- Gross margin does not reflect net profit before all costs.
- Reasonable margins vary by sector.
Official sources: Accounting and management principles · General Tax Code (DGI).
Last updated: February 2026.
Last updated: February 2026.
❓ Frequently asked questions
What is the difference between markup and margin?
Markup is computed relative to the cost price; margin on sales is computed relative to the selling price.
How do I set a selling price from a target markup?
Multiply the cost price by (1 + markup rate).
Is margin the same as profit?
No, gross margin must first cover all fixed and variable costs before becoming net profit.
Method and reliability: informative estimate based on the stated parameters and reviewed in July 2026. See our calculation method and sources. Seek qualified professional advice before an important tax, legal, medical or financial decision.