Free calculator
Profit Margin Calculator
Gross margin, net margin and markup on a single product.
Inputs
Results
Net margin
54.0%
$27.00 kept on each sale.
- Gross margin70.0%
- Gross profit$35.00
- Net profit$27.00
- Markup233.3%
Formula
- Gross profit = price − product cost
- Net profit = gross profit − shipping − other costs
- Margin = profit ÷ price
- Markup = gross profit ÷ product cost
FAQ
What is the difference between gross and net margin?+
Gross margin only takes out what the product cost you. Net margin also takes out shipping, fees, packaging and anything else each order costs, so it is the share of the price you keep.
What is the difference between margin and markup?+
Margin is profit divided by the selling price. Markup is profit divided by the cost. A product that costs $20 and sells for $50 has a 60 percent margin and a 150 percent markup.
What is a good profit margin for ecommerce?+
It varies by category. Many DTC brands aim for a gross margin of 50 to 70 percent so there is room left for shipping, fees and paid acquisition.
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