Margin calculator
Calculate gross profit, gross margin, markup, and cost ratio before ads and channel-specific expenses.
Use this for quick sourcing checks before adding platform fees, shipping, ads, and overhead.
Gross profit
$26.00
Gross margin
65%
Markup
185.7%
Cost ratio
35%
Gross profit = selling price - cost of goods.
Gross margin = gross profit / selling price. Markup = gross profit / cost of goods.
Gross margin is a simple planning metric and does not represent final net profit. Last config update: 2026-07-06.
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Use Gross Margin Calculator before listing, reordering, or launching ads. Start with conservative costs, then test how price and fees change profit.
Gross Margin Calculator follows a simple seller economics model: revenue minus product cost, shipping, platform fees, payment fees, advertising, and other order-level costs.
A seller can enter a target price, product cost, shipping cost, and fee rate, then compare profit margin before deciding whether the item deserves more research.
The most common issue is treating marketplace revenue as profit. Gross Margin Calculator helps expose hidden costs before they become expensive inventory mistakes.
No. Gross margin only compares price to product cost. Net margin includes shipping, fees, ads, overhead, and other expenses.
It depends on channel and acquisition cost. Many ecommerce sellers need enough gross margin to absorb fees and paid traffic.