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Product Profit Margin and Markup Calculator
Find gross profit per item, profit margin as a share of selling price, and markup as a share of cost in Kenyan shillings.
Enter the direct costs you want counted. Monthly rent, fixed salaries, taxes, and fees are not included unless you add them to unit cost.
Your estimate
- Gross profit per item or service
- Ksh 500.00
- Gross profit margin
- 50%
- Markup on cost
- 100%
Common questions
Answers about this tool
- What is the difference between profit margin and markup?
- Both use selling price minus cost as profit. Margin divides profit by selling price; markup divides profit by cost. For example, a KSh 100 cost and KSh 150 selling price gives KSh 50 gross profit, a 33.33% margin, and a 50% markup.
- Does gross margin include rent or other monthly overheads?
- No. This tool compares one unit’s direct cost with its selling price. It does not subtract rent, fixed salaries, or other monthly overheads, so the result is not net profit.
Method
How this estimate works
Gross profit per unit is selling price minus direct unit cost. Gross margin divides that profit by the selling price; markup divides it by the cost. Enter all direct costs you want included. Rent, salaries, payment fees, discounts, and tax are not added unless you include them in the unit cost.
Use this as a planning estimate. Actual profit and cash flow depend on overhead, taxes, discounts, payment timing, and other costs not entered here.
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