Profit Margin Calculator
Enter any 2 of 3 (cost, price, margin) and get the 3rd + all ratios.
Profit ($)
50,00 $
Gross margin %
33,33 %
Markup %
50,00 %
Price/cost ratio
1,50 ×
Gross margin = (Price − Cost) / Price. Markup = (Price − Cost) / Cost. Don't confuse the two.
Gross margin vs markup: the difference
Many SMBs confuse them. They're not the same:
- Gross margin = (Price − Cost) ÷ Price. Percentage of sale price you keep after cost.
- Markup = (Price − Cost) ÷ Cost. Percentage you add to cost to set your price.
Example: cost $100, price $150. Gross margin = 33.33%, markup = 50%.
Target margins by industry
- Retail: 30-50%
- Restaurant: 60-70% on food cost
- SaaS: 70-85%
- Professional services: 50-70%
- Construction: 15-25% (before overhead)
Forge Tech calculates margin live per product
Forge Tech's Inventory/Purchasing module automatically computes gross margin per SKU, customer, project — and alerts you when selling below threshold.
