What is a good profit margin?▾
It depends on the industry. Retail and distribution often run 5–15% net and 20–40% gross margins; software and services can exceed 60% gross. Compare against businesses like yours.
What is the difference between margin and markup?▾
Margin divides profit by the selling price; markup divides it by cost. A product bought for 70 and sold for 100 has a 30% margin but a 42.9% markup.
Should GST be included in the selling price?▾
No. GST or VAT collected belongs to the government, so calculate margin on the price excluding tax.
Gross margin vs net margin?▾
Gross margin only subtracts the direct cost of goods. Net margin also subtracts rent, salaries, interest and tax, so it is always lower.
