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Practical Retailer

Gross Margin Calculator

Work out gross profit, margin and markup from what an item costs you and what you sell it for.

$

What you pay for one, including freight in.

$

The shelf price before any discount.

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How to read it

Margin is the share of the selling price you keep after paying for the item. Markup is how much you added on top of the cost. They describe the same profit from two sides, which is why a 50% markup is only a 33.3% margin.

Use the cost you actually pay per unit, including freight in if you can, and the price on the shelf before any discount.