Profit Margin Calculator
Calculate gross and net profit margins for your products. Understand your markup and optimize pricing.
Enter Your Numbers
What you pay for the product (COGS)
What customers pay for the product
Shipping, fees, marketing per unit
Enter your cost and selling price to see results.
Understanding Profit Margins
Gross Margin
The percentage of revenue remaining after subtracting the cost of goods sold (COGS). A 50% gross margin means you keep 50 cents of every dollar in revenue.
Net Margin
The percentage of revenue remaining after all costs including operating expenses. This is your true profit per sale.
Markup vs Margin
Markup is based on cost, margin is based on revenue. A 100% markup equals a 50% margin. They measure the same profit differently.
Industry Benchmarks
Ecommerce gross margins typically range from 30-50%. Fashion and beauty often see 50%+, while electronics may be 15-25%.