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Tool · Ecommerce

Markup and margin calculator

Gross margin and markup from a cost and price, or the price you need for a target margin or markup.

What you pay for the item, including inbound shipping.
Optional: totals for this many units.
Gross margin
40.0%
Markup
66.7%
Profit per unit
$40.00

Margin and markup here are before platform fees, shipping to the customer, ads and overheads. Estimates only, not financial, tax or legal advice.

How it’s calculated

Profit per unit is the selling price minus the cost. Gross margin is that profit as a share of the selling price; markup is the same profit as a share of the cost. The same sale always has a higher markup than margin.

To hit a target margin, the price is the cost divided by one minus the margin (a 40% margin means dividing by 0.6). To hit a target markup, the price is the cost times one plus the markup.

Example

An item that costs $60 and sells for $100 makes $40: a 40% margin and a 66.7% markup. A 50% markup on the same $60 cost gives a $90 price, which is only a 33.3% margin.