Jengabiz Incubator · Free business tool

Know the profit in every sale.

Calculate gross profit margin and markup for a product or service. Add monthly sales and expenses to see an estimated profit margin in Kenyan shillings.

Calculate your margin →

Margin tells a clearer pricing story.

Margin is the share of your selling price left after direct costs. Markup compares the same profit with the direct cost.

Gross profit margin(Selling price − Direct cost) ÷ Selling price × 100

Enter the price and direct cost for one product or service.

Profit margin calculator

Start with the price and direct cost.

Your monthly planning figures are optional. Keep all prices and costs on a consistent tax basis.

Business inputs

Required fields are marked *. All money amounts are in KES.

Materials, packaging or direct service delivery costs.
Optional planning figures
Include all relevant expenses for a fuller profit estimate.
See a price that reaches at least this margin.

Your figures are calculated in this browser and are not sent to Jengabiz.

Your margin will appear here.

Enter your figures or use the sample to explore how margins and markup differ.

Read the numbers

Margin, markup and monthly profit.

Gross margin

Gross profit divided by selling price. It shows the percentage of each sale left after direct costs.

Markup

Gross profit divided by direct cost. It shows the amount added on top of that cost, expressed as a percentage.

Monthly estimate

Gross profit per unit multiplied by monthly sales, less any monthly expenses you entered.

Questions

Use the result with confidence.

Is a 40% markup the same as a 40% margin?

No. A KES 1,000 item sold for KES 1,400 has a 40% markup on cost, but its gross margin is about 28.57% of the selling price.

What if direct cost is more than price?

The gross margin is negative. The calculator shows that loss per unit. Recheck pricing and costs before using that price.

Does the monthly figure equal net profit?

Only if you enter every relevant expense and use consistent tax treatment. Otherwise, it is a planning estimate based on the costs you supplied.

Can I use it for several products?

Calculate each product separately. An overall business margin also depends on how many of each product you sell.

Want to strengthen your pricing strategy?

Explore your margins, costs and growth decisions with a Jengabiz Business Clinic adviser.

Explore Business Clinic →