Enter your price and cost to see gross margin, net margin, markup, profit per order, and the break-even ROAS your ads need. Add shipping and fees for your true net profit. Runs in your browser - nothing is stored or sent.
Optional - for true net profit
Enter a selling price and product cost to see your margin.
The math
Four numbers do most of the work. The calculator above runs all of them for you, but here is what each one means and how it is worked out.
(Selling price - Product cost) / Selling price x 100Your profit as a share of the price, counting only what the product cost you. The headline number most people mean by "margin".
(Selling price - all costs) / Selling price x 100The same idea after every cost - payment fees, shipping, ad spend, returns. This is the figure that tells you if you actually made money.
(Selling price - Product cost) / Product cost x 100Profit as a share of the cost, not the price. A 50% margin is a 100% markup - same profit, different denominator.
Selling price / profit per order (before ads)The return your ads must beat to break even on an item. Spend below it and the campaign loses money, whatever the ad platform reports.
Gross vs net
Gross margin only looks at what a product cost you. It is a useful first number, but it quietly ignores everything that happens between the sale and your bank account.
A 60% gross margin can turn into a 5% net margin once you subtract payment fees, the shipping you absorb on free-shipping orders, the ad spend that won the sale, and the returns that come back. That is why two stores with the same headline margin can have completely different bank balances.
Fill in the optional fields in the calculator - shipping, payment fee, other cost per order - and watch the net margin move. That gap between gross and net is where most of the profit leaks in ecommerce. For the full breakdown of what goes into a real profit number, see how profit is calculated.
Benchmarks
There is no single right answer - it depends on what you sell and how you sell it. As a rough guide for product businesses:
Gross margin
Often 50 to 70% for a healthy product business. Below ~40% leaves little room for ads and returns.
Net margin
Commonly 10 to 20% once every cost is counted. Positive and steady beats a big number that swings.
Dropshipping
Usually much thinner - single-digit net margins are common because ad spend eats most of the gross.
Handmade / premium
Can run higher, but lower volume, so the profit per order matters more than the percentage.
The benchmark that matters most is your own margin over time, per product. The Shopify product profit report in Easy Profit Calculator tracks it automatically.
FAQ
Margin, markup, net profit, and break-even ROAS - explained.
See real profit and margin for every order, product, and month - automatically, after product cost, payment fees, shipping, returns, and ad spend. No spreadsheets, no guessing.
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