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Profit margin & markup calculator

Enter your unit cost and either a selling price or a target margin. We calculate gross profit, margin percentage and markup percentage.

Selling price
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Gross profit
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Margin
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Markup
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The formulas

Gross profit = price − cost. Margin = gross profit ÷ price. Markup = gross profit ÷ cost. To hit a target margin, set price = cost ÷ (1 − margin). Retailers usually think in margin; wholesalers and manufacturers often think in markup — this tool shows both so you don't mix them up.

Frequently asked questions

What is the difference between margin and markup?

Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 50% markup on a $10 cost gives a $15 price, which is a 33.3% margin.

How do I set a price from a target margin?

Price = cost ÷ (1 − target margin). For a $10 cost and a 40% target margin: 10 ÷ 0.6 = $16.67.

What is a healthy gross margin?

It varies widely by industry — grocery runs low single digits to teens, apparel and specialty retail often 45%–65%, hospitality food cost targets a 65%–75% margin. Compare to peers in your category.

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