Veira

Kenya Profit Margin Calculator

Use this profit margin calculator Kenya to find your gross margin, markup and net margin on any product. Enter cost and selling price (plus optional overheads).

Calculator
Result
Gross 40.0% · Net 40.0%
Selling priceKES 1,000.00
Gross profitKES 400.00
Gross margin40.00%
Markup over cost66.67%
Net profit (after overhead)KES 400.00
Net margin40.00%

Margin = profit ÷ selling price. Markup = profit ÷ cost. They are different, most owners confuse them.

Automate this
Want Veira to do this for every sale, every shift, every branch, automatically?
See plans and pricing Book a demo

Margin vs markup, the most confused pair in retail

Margin and markup look similar but they are different. Margin uses the selling price as the base. Markup uses the cost. A 50% markup is only a 33.3% margin.

Kenyan retailers often quote markup ("I add 30% to cost") while wholesalers quote margin ("our margin is 18%"). Use the right one in every conversation.

Worked examples

Buy at KES 600, sell at KES 1,000
  • Gross profit = 400 · Gross margin = 40% · Markup = 66.7%

Frequently asked questions

What is a healthy retail margin in Kenya?
Supermarkets 18-25% gross. General shops 20-35%. Fashion 45-60%. Pharmacies 25-35%.
Why is markup higher than margin?
Margin uses a larger base (the selling price). Markup uses a smaller base (cost), so the same profit looks like a bigger percentage.
Should I price by margin or markup?
Price by margin. Your profit and break-even are always expressed against revenue, not cost.
What is net margin?
Net margin = (price − cost − overhead) ÷ price. It is what you actually keep after running costs.
Does Veira track margin per SKU?
Yes. Veira shows live gross and net margin per product, per branch and per shift.

Business reviews

4.8
Based on 4 reviews
5
3
4
1
3
0
2
0
1
0
Jane M.
Verified business

Finally a tool that gets Kenyan tax rules right. Zero KRA rejections since using this.

5/10/2024
Noor A.
Verified business

Accurate and saves me hours every month. The breakdown is clear and my staff finally understand their deductions.

5/20/2024
Ahmed H.
Verified business

Exactly what I needed. Calculated costs before ordering and saved a fortune on import duties.

5/15/2024
David K.
Verified business

Very helpful. Only thing missing is export to CSV but overall excellent.

5/5/2024

Used this tool? Share your experience and help other businesses.