The Most Important Retail Metric
If you are selling products online or in a physical store, your Profit Margin is the ultimate indicator of your business health. Calculating it manually for hundreds of SKUs is tedious, but our calculator makes it instant.
Don't Confuse Margin with Markup
If you buy a product for $50 and sell it for $100, your Markup is 100%, but your Margin is only 50%. Confusing these two terms can cause you to accidentally price your products at a loss. Our tool displays both simultaneously to prevent this costly error.
Frequently Asked Questions
Profit Margin is your profit divided by your revenue. It tells you what percentage of your total sales is actually profit. For example, a 20% margin means you keep 20 cents for every dollar of sales.
No! This is a very common mistake. Margin is based on Revenue (Selling Price), while Markup is based on Cost. A 50% markup on a $100 item makes the price $150. The profit is $50, which is a 33% margin ($50 / $150).
It varies wildly by industry. Grocery stores operate on razor-thin margins (1-3%), while software companies often have margins exceeding 80%.