📊 Business & Finance
Profit Margin Calculator
Calculate gross margin, markup, and selling price from cost and target margin. Free.
Margin
How to use
1
Margin vs markup
This is the most confused thing in pricing. Margin = profit as % of selling price. Markup = profit as % of cost. If you buy at £10 and sell at £20, your markup is 100% but your margin is 50%. To convert: margin = markup ÷ (1 + markup).
2
Typical retail margins
Grocery 1-3% (volume game) · Restaurants 3-5% net (much higher gross) · Clothing 50-65% · Jewellery 50% · Electronics 5-25% · SaaS software 70-85%. The lower the margin, the higher the volume needed to make the business viable.