How to use the Profit Margin Calculator
Enter what one unit costs you, including packaging and inbound shipping, then the price your customer pays. Margin is profit as a share of the selling price. Markup is profit as a share of your cost.
Profit per sale
$18.00
- Profit margin
- 60.0%
- Markup
- 150.0%
Frequently asked questions
What is a good profit margin for an online store?
Many ecommerce stores aim for a gross margin of 40% or more, so there is room left for ads, returns and fees. It varies a lot by product category.
What is the difference between margin and markup?
Both use the same profit. Margin divides it by the selling price, markup divides it by the cost. A $10 item sold for $20 has a 50% margin and a 100% markup.
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