Instantly calculate your gross margin and markup from cost or sell price. Includes case-to-unit pricing conversion for food distributors.
Markup is calculated on cost: (Profit ÷ Cost) × 100
Margin is calculated on sell price: (Profit ÷ Sell Price) × 100
A 25% markup ≠ 25% margin. Margin will always be lower than markup.
Distributal helps food distributors like you track margins in real time, prevent revenue leaks, and grow faster — all from your phone.
Many food distributors confuse markup and margin. Using the wrong one can mean underpricing your products and losing money without realizing it.
Markup is the percentage increase applied to the cost of a product to arrive at the selling price.
Gross margin is the percentage of the sell price that is profit — what's left after paying for the product.
Key Insight for Distributors
A 25% markup results in only a 20% margin. If your target is a 25% margin, you need to apply a 33.3% markup. Always confirm which metric your buyers and suppliers are using to avoid costly pricing errors.
Distributal is the operating system for food distributors. Real-time tracking, proof of delivery, and AI-powered forecasting — all from your phone.
Learn About Distributal