Compute gross profit and margin between retail price and cost.
Gross profit is the retail price minus cost, and margin expresses that profit against the retail price while markup uses cost. Margin is how retailers price for profitability, and confusing it with markup silently changes the profit on every sale.
Retail Margin
Margin = (retail - cost) / retail x 100
Margin = (retail - cost) / retail x 100 Gross profit is the retail price minus cost, and margin expresses that profit against the retail price while markup uses cost.
Margin is how retailers price for profitability, and confusing it with markup silently changes the profit on every sale.
This calculator takes 2 inputs: Retail price, Cost price. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.