Margin Calculator
Calculate your gross profit, profit margin and markup percentage. Enter your cost price and selling price, or choose a desired margin.
Calculation Mode
Selling Price
€ 0,00
Gross Profit
€ 0,00
Profit Margin
0%
Markup
0%
Profit Margin
0%
0%
25%
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75%
100%
Price Breakdown Visualization
Cost
Cost: € 0,00
Profit: € 0,00
Margin Calculation - All About Profit Margin and Markup
Whether you run a webshop, purchase products, or plan your business strategy, understanding your profit margin and markup is essential. With our free margin calculator, you can calculate your gross profit, profit margin, and markup percentage in seconds.
Difference Between Margin and Markup
- Profit Margin: The percentage of the selling price that is profit. Formula: (Profit / Selling Price) x 100. A 50% margin means half of your selling price is profit.
- Markup: The percentage added to the cost price. Formula: (Profit / Cost Price) x 100. A 100% markup means you double the cost price.
Common Margins by Industry
- Retail clothing: 50-60% markup (33-37% margin)
- Electronics: 20-30% markup (17-23% margin)
- Restaurants: 200-300% markup on food (60-75% margin)
- Software/SaaS: 80-90% margin
- E-commerce: 30-50% margin on average
Tips for a Healthy Margin
- Account for all costs: packaging, shipping, returns, and overhead
- Regularly compare your margin with industry peers
- Consider volume discounts from your suppliers for a better cost price
- Test different price points to find the optimal price-profit ratio