Business Resources
Retail Margin Calculator
Gross margin is the share of a sale you keep after the cost of the product itself. Enter your unit cost, your selling price and the number of units you expect to sell to see revenue, gross profit, gross margin percentage and markup percentage.
Gross margin = (selling price − product cost) ÷ selling price. Markup = (selling price − product cost) ÷ product cost.
Calculator
Enter Your Numbers.
Results
- Revenue
- $2,500.00
- Gross profit per unit
- $60.00
- Gross margin
- 60.00%
- Markup
- 150.00%
- Total gross profit
- $1,500.00
- Total product cost
- $1,000.00
These figures are gross margin only. Operating costs are not included.
Formulas
Margin vs Markup, Side by Side.
(Selling price − Cost) ÷ Selling price × 100
Margin answers: of every dollar of revenue, how much is left after product cost? It can never exceed 100%.
Example: ($100 − $40) ÷ $100 = 60% margin.
(Selling price − Cost) ÷ Cost × 100
Markup answers: how much did you add on top of what you paid? It can exceed 100% easily.
Example: ($100 − $40) ÷ $40 = 150% markup.
What this tells you
Reading the Results.
Written and reviewed by the InstaMed Wholesale business team. Last reviewed September 2026. This is general business education, not legal, tax or financial advice.
Last reviewed 2026-09-17.
FAQ
Common Questions.
How do you calculate retail gross margin?
Gross margin percentage equals (selling price minus product cost) divided by selling price, multiplied by 100. A product costing $40 and selling for $100 has a 60% gross margin.
Is margin the same as markup?
No. Margin divides gross profit by the selling price; markup divides the same gross profit by the cost. A 60% margin is a 150% markup on the same product.
Does this calculator include shipping, taxes or operating costs?
No. It calculates gross margin only. Freight, payment processing, labour, rent and marketing come out of gross profit and are handled at the contribution and net profit levels.
What product cost should I enter?
Use your landed unit cost — what you actually pay per unit including inbound freight and duties, if you can allocate them.
Related resources
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