Gross Margin Calculator
Calculate the gross margin of your retail products to ensure you're pricing for profit.
Fill in the fields above and click Calculate to see your results.
How to use
Enter your net sales revenue (total sales after returns and discounts) and your cost of goods sold — the direct cost of the products you sold, including purchase price, inbound shipping, and import duties. The calculator instantly shows your gross margin percentage and gross profit in absolute terms.
Use gross margin to judge whether your pricing covers product costs with enough left over for rent, salaries, and marketing. Track it monthly: a falling margin usually means supplier prices crept up or you are discounting too aggressively. If you sell multiple product lines, run each category separately — a blended number can hide one line that quietly loses money.
How it's calculated
Gross Margin %
Gross Profit
Examples
Apparel boutique
- Cost of Goods Sold (COGS):100,000,000
- Net Sales Revenue:200,000,000
Result
- Gross Profit:100,000,000
- Gross Margin %:50
A boutique selling 200M₫ of clothing that cost 100M₫ to source keeps a 50% gross margin — right at the healthy benchmark for apparel. Half of every sale is available to cover rent, staff, and profit.
Mini-mart (grocery)
- Cost of Goods Sold (COGS):240,000,000
- Net Sales Revenue:300,000,000
Result
- Gross Profit:60,000,000
- Gross Margin %:20
A mini-mart with 300M₫ revenue and 240M₫ COGS earns a 20% margin — typical for grocery, which relies on volume rather than per-item profit. At this margin, controlling shrinkage and spoilage matters more than raising prices.
Industry Benchmarks
| Metric | Typical Range |
|---|---|
| Absolute gross profit should at least cover fixed operating costs (rent, payroll, utilities) with 10–15% of revenue left as operating buffer. | — |
| General retail averages ~45%, but ranges widely: grocery 20–25%, apparel 45–55%, electronics 10–15%, cosmetics 55–65%. | 45 % |
Data source: CalcVault editorial; NYU Stern Margin by Sector (2025); VN retail industry reports
Frequently Asked Questions
What is a good gross margin for retail?
What is the difference between gross margin and markup?
Should COGS include shipping and import fees?
How often should I review my gross margin?
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