Which should I use to price my product, margin or markup?

Margin tells you what share of each sale is profit, which is usually more useful for measuring overall profitability, while markup is often used when pricing from a known cost basis.

What's a healthy margin?

It varies enormously by industry — retail often runs 20–50% margin, while software or services can run much higher.

Margin Calculator

Calculate gross margin, markup, or the selling price needed to hit a target margin.

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Margin vs. markup

Gross margin is profit as a percentage of the selling price: (Price − Cost) ÷ Price. Markup is profit as a percentage of the cost: (Price − Cost) ÷ Cost. They describe the same profit in two different ways, and confusing the two is a common small-business pricing mistake.

Frequently asked questions

Which should I use to price my product, margin or markup?: Margin tells you what share of each sale is profit, which is usually more useful for measuring overall profitability, while markup is often used when pricing from a known cost basis.
What's a healthy margin?: It varies enormously by industry — retail often runs 20–50% margin, while software or services can run much higher.