Every pricing mistake reduces your net profit. Enter your cost of goods and selling price to see your exact gross margin, profit dollar amount, and markup percentage.
Calculating profit margins manually or in spreadsheets leads to common errors—like mistaking markup percentage for profit margin percentage. A product bought for $50 and sold for $80 generates $30 profit, which is a 37.5% profit margin, but a 60% markup. Knowing the difference protects your cash flow.
Profit Margin (%) = [(Selling Price - Cost) / Selling Price] × 100
Markup (%) = [(Selling Price - Cost) / Cost] × 100Instead of manually tracking costs and calculating margins for every single SKU, BiznessBook calculates your real profit automatically every time you record a POS sale or update inventory stock.
A 10% net profit margin is considered average for small retail businesses, while 20% is considered good and 30%+ is high. Gross margins vary by industry—retail boutiques average 40-50%, while restaurants average 60-70% gross margin on food.
Profit Margin is the percentage of selling price that is profit. Markup is the percentage added to the cost price to get the selling price. Margin is based on revenue; markup is based on cost.
BiznessBook automatically records your purchase costs (COGS) and selling prices in real time, showing you exact profit margins on every product sold through your mobile or desktop POS.