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Alladdin

Is the price you charge leaving enough profit?

Enter what a product or service costs you and what you sell it for. The calculator shows the profit, the margin on the selling price and the markup on cost.

Profit, margin and markup

Amounts in MAD. Margin is profit divided by the selling price. Markup is profit divided by cost.

Profit
200,00 MAD
Markup
33,33 %
Margin
25 %

A general calculation from the figures you enter. Check the result before you use it in a quote or a decision.

How it works

Profit is the selling price minus the cost. The margin expresses that profit as a share of the price you charge, and the markup expresses it as a share of what the item cost you.

A product that costs 600 MAD and sells for 800 MAD gives 200 MAD of profit. That is a margin of 25% and a markup of 33.33%. The two figures describe the same profit, so be clear which one a supplier, a partner or your accountant means.

What to include in the cost

  • The purchase price or production cost of the item.
  • Costs you pay for each sale, such as packaging, delivery or card fees.
  • Leave out TVA you can recover. Work with prices excluding tax (HT) on both sides.

Questions

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 cost. With a cost of 600 MAD and a price of 800 MAD, the margin is 25% and the markup is 33.33%.

Should I enter prices with or without TVA?

Without TVA (HT) on both fields. TVA you charge goes to the tax authority and TVA you pay on purchases is usually recoverable, so neither belongs in your profit.

Does the margin cover my overheads?

No. This is a margin on one item. Rent, salaries and other fixed costs come out of it afterwards. The break-even calculator shows how many sales you need to cover them.

Track the real margin of every sale

Record products with their cost in Alladdin and see the margin of each invoice and each product.