Retail Margin Calculator
Margin and markup answer different questions. Margin divides profit by the selling price; markup divides profit by cost. Use the calculator to check a product's gross profit before other expenses.
Manage pricing and inventory in one place
The free tool helps with one task. ShelfAhead keeps batches, checks, signs and store activity together.
How to use this tool
- 01
Enter the unit cost and selling price on the same tax basis. Mixing a cost excluding GST with a price including GST will distort the result.
- 02
Gross profit is selling price minus cost. A negative result means the item is priced below its entered cost.
- 03
A target margin below 100% can be used to estimate a selling price. Round and verify your store's tax and pricing rules.
Common questions
What is the difference between margin and markup?
On a $10 cost and $15 selling price, gross profit is $5. Markup is 50% of cost; margin is about 33.33% of selling price.
Does gross profit include rent and wages?
No. It is the difference between the entered unit selling price and unit cost before other operating expenses.