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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.