Retail Margin Calculator

About this calculator

This calculator works from two numbers — item cost and selling price — to produce the three figures retailers actually price around: gross profit (price − cost), gross margin (profit ÷ price, expressed as a percentage of the selling price), and markup (profit ÷ cost, expressed as a percentage of what you paid). Margin and markup are easy to confuse but always differ — a 50% markup is only a 33% margin — which is exactly why seeing both side by side matters.

Retail store owners and e-commerce merchandisers use it when setting shelf or listing prices to hit a target margin, and pricing analysts use it to audit whether current prices across a catalog are actually delivering the margin the business plan assumes.