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True Margin vs. Markup Calculator

Calculate profit margin, markup percentage, and gross profit from cost and selling price.

카테고리:소매 및 POS
소매 및 POS

True Margin vs. Markup Calculator

Essential for retail pricing strategy

Calculate profit margin, markup percentage, and gross profit from cost and selling price.

$

What did you pay for the item?

$

What are you selling it for?

수익 분석

Profit Margin %

33.33%

Percentage of revenue that is profit

Markup %

50.00%

Percentage increase from cost

Gross Profit per Unit

$5.00

Actual dollar profit per sale

마진 및 마크업 이해

Profit margin and markup are two different ways to measure profit. Margin is a percentage of revenue, while markup is a percentage of cost. Understanding both helps you make better pricing decisions for your retail business.

For example, if an item costs $10 and you sell it for $15, your markup is 50% (increase from cost), but your profit margin is only 33% (profit as % of revenue). Higher margins are healthier for your business.

공식:

  • Profit Margin % = (Profit ÷ Selling Price) × 100
  • Markup % = (Profit ÷ Cost) × 100
  • Gross Profit = Selling Price - Cost

💡 소매업자를 위한 팁:

A healthy profit margin depends heavily on your industry. Retailers typically aim for a 50% gross margin (a 100% markup), also known as keystone pricing.

Ready to Optimize Your POS?

Download Olgax POS and implement these pricing strategies across your entire inventory.