Free Margin Calculator for Ecommerce
The Markup Calculator helps merchants determine the perfect selling price based on your product costs and desired profit. Use it when you are launching a new product line or a discount campaign and predict your profit margins and revenue before going live.
- No signup required
- 100% FREE
- Instant results
What is Margin?
Margin Definition
Margin is the percentage of revenue that remains as profit after covering costs. It shows how much of each sale you actually keep. For example, if you sell a product for $150 and it costs $100, your margin is 33.3%.
Markup vs Margin
Markup and margin are different concepts. While markup is calculated based on cost, margin is calculated based on selling price. A 50% markup on the same product equals approximately 33% margin.
Why It Matters?
Knowing your margin helps you avoid pricing products at a loss. Too thin a margin leaves no room for discounts or returns, while a healthy margin gives you flexibility to compete and grow.
How to Use the Markup Calculator?
Enter Cost
Enter your product’s total cost (COGS – Cost of Goods Sold). This should include production, sourcing, and all other direct costs.
Enter Selling Price
Input the price at which you plan to sell the product. You can test different price points to see how margin changes.
Review Results
Instantly see your gross profit and margin percentage. Adjust your cost or price to find the margin that works best for your business.
Frequently Asked Questions
Is the Margin Calculator free to use?
Yes, completely free. Unlimited calculations, no registration, no payment required.
What is a good profit margin for ecommerce?
It depends on your category and model. Typical ecommerce gross margins range from 20% to 60%.
What's the difference between margin and markup?
Margin is calculated based on selling price; markup is based on cost.
Who is this calculator for?
Built for merchants, ecommerce managers, and pricing analysts who need to quickly evaluate the profitability of their products and pricing decisions.
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