What is gross profit margin?

Gross profit margin is (Selling Price - Product Cost) divided by Selling Price, expressed as a percentage. It measures how much of each sale dollar remains after covering the cost of the product itself, before other expenses.

What is net profit margin in ecommerce?

Net profit margin accounts for all variable costs — product cost, shipping, platform fees, and any other expenses — relative to the selling price. It tells you the actual percentage of revenue that becomes profit.

What is markup vs margin?

Markup is the profit expressed as a percentage of your cost, while margin is the profit expressed as a percentage of the selling price. A product that costs $10 and sells for $15 has a 50% markup but only a 33.3% margin.

What platform fee should I enter for Amazon?

Amazon charges a referral fee of roughly 8–15% depending on the category, plus FBA fulfillment fees if applicable. Enter the combined percentage in the Platform Fee field, or add the flat FBA fee to the Shipping Cost field.

How do I find my break-even price?

Set the target margin to 0% or simply observe the "Minimum Price to Break Even" figure shown in the results. Selling at or above that price means you will not lose money on the transaction.

Does this tool store my data?

No data is sent to any server. All calculations happen in your browser and nothing is saved or transmitted.

Ecommerce Profit Margin Calculator

Name: Ecommerce Profit Margin Calculator
Availability: InStock
Author: Nham Vu

Enter your selling price, product cost, shipping, and platform fees to instantly see your gross margin, net profit, and markup percentage.

Enter Your Numbers

Selling Price (customer pays)

Product Cost (what you paid)

Shipping Cost (you pay to ship)

Platform Fee (% of selling price)

Amazon ~8–15%, Etsy ~6.5%, eBay ~13.25%, Shopify Payments ~2.9%

Other Costs (packaging, ads, etc.)

Enter your numbers on the left and click Calculate

Copied!

Summary

Enter your selling price, product cost, shipping, and platform fees to instantly see your gross margin, net profit, and markup percentage.

How it works

Enter the product selling price (the amount the customer pays).
Enter the product cost (what you paid to source or manufacture it).
Enter your shipping cost (what you pay to ship the order).
Enter the platform fee percentage charged by the marketplace or payment processor.
Optionally add other fixed costs such as packaging or advertising spend.
The calculator instantly shows gross profit, net profit, profit margin %, and markup %.

Use cases

Price products on Amazon, eBay, Etsy, or Shopify to hit a target margin.
Compare profitability across different suppliers or sourcing prices.
Evaluate whether a product is worth selling after fees and shipping.
Negotiate better supplier costs by knowing your break-even point.
Set minimum sale prices during promotions without losing money.
Audit your existing catalog to find low-margin or loss-making products.
Model how a fee change (e.g. Amazon FBA rate increase) impacts profit.
Present clear margin data when pitching new products to stakeholders.

Frequently Asked Questions

Related tools

Markup From Margin Calculator Break Even Units Calculator Inventory Turnover Calculator

Last updated: 2026-05-29 · Reviewed by Nham Vu