Free Retail Tool

Retail Profit Margin & Markup Calculator

Enter your cost and selling price to instantly see profit, margin %, and markup % in any currency. Free, no signup — built by RetaPOS for small retail owners.

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Results update as you type. Nothing is stored or sent anywhere.

Profit —
Profit margin —
Markup —

Find the selling price from a target margin

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Set your price at —
Profit per unit —

How to calculate retail profit margin and markup

Profit margin and markup both measure profit, but against different bases. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost price. Retailers set prices with markup and report profitability with margin — mixing them up is the most common pricing mistake.

Profit = Selling price − Cost price
Margin % = (Profit ÷ Selling price) × 100
Markup % = (Profit ÷ Cost price) × 100

Example: a product that costs $60 and sells for $100 earns $40 profit — a 40% margin but a 66.7% markup. RetaPOS applies your markup automatically at billing and reports live margins per product, category, and store, so you always price for profit.

Frequently asked questions

Subtract the cost price from the selling price to get profit, then divide profit by the selling price and multiply by 100. For example, a $100 sale on a $60 item is $40 profit ÷ $100 = a 40% margin. RetaPOS reports this margin automatically for every product and category.

Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost price. The same $40 profit on a $60 cost item is a 40% margin but a 66.7% markup. Use markup to set prices and margin to measure profitability.

Most small retail stores target a gross margin of 40–55%, though it varies by category — grocery runs lower (10–25%) while jewelry, cosmetics, and optical run higher. Track your live margin per category in RetaPOS to spot low-margin lines before they hurt profit.

Divide the cost price by (1 minus the target margin as a decimal). For a $60 item at a 40% target margin: $60 ÷ (1 − 0.40) = $100. Use the “target margin” box above to do this instantly for any currency.

Yes, the RetaPOS profit margin calculator is completely free with no signup. It runs entirely in your browser and stores nothing. RetaPOS itself is a cloud-based mobile POS for small retail from US$399/year (International) or ₹6,000/year (India), with a free demo.

Price for profit automatically with RetaPOS

Stop calculating margins by hand. RetaPOS applies your markup at billing and shows live profit per product, category, and store — on your phone. Requires a Wi-Fi or 4G/5G connection.

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