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Retail Profit Margin Calculator

Calculate retail profit margins and markups. See gross margin, net margin, and markup percentage for your retail products.

Retail profit margins vary widely by product category — from 2-5% for groceries to 50-70% for jewelry. This calculator helps you determine your gross and net profit margins, and set the right markup to hit your profitability targets.

Tips for Retail Profit Margin

1

Gross margin vs net margin: gross margin excludes overhead (rent, staff); net margin includes everything

2

Markup and margin are NOT the same: a 50% markup equals a 33.3% margin

3

Healthy retail gross margins: clothing 50-60%, electronics 15-25%, groceries 25-35%, jewelry 50-70%

Frequently Asked Questions

What is the difference between markup and margin?
Markup is the percentage added to cost: (Price - Cost) / Cost × 100. Margin is the percentage of the selling price that is profit: (Price - Cost) / Price × 100. A product costing $60 sold for $100 has a 67% markup but a 40% margin.
What is a good profit margin for retail?
Gross margins: 50%+ is strong for most retail. Net margins: 5-10% is typical for brick-and-mortar retail. Online retail can achieve higher net margins (10-20%) due to lower overhead.
Last updated: April 2026

Data sources: Standard mathematical formulas

For informational purposes only. Not financial, medical, or legal advice. Always consult a qualified professional for decisions affecting your finances or health.

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