Margin & Markup
See the profit on one item and two different ways to express it.
Margin uses selling price as its base. Markup uses cost.
ShopsInto / free retail tools
For small retailers and shop owners: see profit on an item, find a target selling price, check how often stock turns, and see gross return on inventory. Calculations stay in your browser. Enter amounts in one consistent monetary unit; this tool performs no currency conversion.
Work through a number
Gross profit is revenue minus cost of goods sold. It excludes operating expenses such as rent, wages and marketing.
See the profit on one item and two different ways to express it.
Margin uses selling price as its base. Markup uses cost.
Find the price needed for a desired gross margin.
The suggested price rounds upward to two decimal places so it does not miss your target.
Measure how often average inventory is sold during a period.
All figures must cover the same period. Value beginning and ending inventory at cost.
See the gross profit earned for each unit of money invested in average inventory.
GMROI is a ratio, not net profit or a percentage. A negative result means a gross loss.
Read the numbers
Gross profit is selling price minus cost price. Margin is gross profit as a percentage of selling price. Markup is gross profit as a percentage of cost price.
For example, if an item costs 100 and sells for 150, gross profit is 50, margin is 33.3%, and markup is 50%. These are illustrative amounts, not a target.
Use each result
Scope of the numbers
These calculations do not include tax (VAT or GST), shipping or delivery, card or payment fees, marketplace fees, discounts or promotions, wastage or shrinkage, financing or interest, payroll, rent, or other overheads.
Results are gross-level operational calculations, not net profit.