Free tool

Margin and markup calculator

Enter cost and price to get gross margin, markup and profit per unit, using landed cost for an honest number.

Unit cost, landed ($)Selling price ($)

Formulas

Gross margin = (price − cost) ÷ price × 100

Markup = (price − cost) ÷ cost × 100

Use landed cost, not the supplier's price, or your margin will look better than it is.

FAQ

What's the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of price. A $10 item sold for $20 has 100% markup and 50% margin.

What margin do I need on Shopify?

Enough to cover ad spend, shipping, payment fees and returns, with profit left over. Run your numbers rather than using a rule of thumb.

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