Ecommerce Profit Margin Calculator
Calculate your profit margin, markup percentage, and break-even point instantly. Factor in shipping costs and platform fees for accurate profitability analysis.
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Profit Margin
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Markup
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Profit Per Unit
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Break-Even Qty
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Understanding Your Margins
Profit Margin vs Markup
Profit margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price. A product that costs $10 and sells for $20 has a 50% profit margin but a 100% markup. Most pricing discussions use margin, while purchasing teams think in markup.
Why Platform Fees Matter
Shopify charges transaction fees (unless using Shopify Payments), Amazon takes 8-15% referral fees, and eBay charges final value fees. These eat directly into your margin. Always factor in platform fees when calculating true profitability.
Healthy Margin Benchmarks
Most e-commerce businesses target 20-50% gross profit margins depending on category. Fashion and beauty typically run 40-60%. Electronics run 15-30%. If your margins are below 20%, you are vulnerable to competitor price changes wiping out your profit entirely.
Protect Your Margins Automatically
Knowing your margins is step one. Protecting them from competitor undercutting is step two. Price Patrol monitors competitor prices and adjusts yours automatically — with floor prices that ensure you never sell below your minimum margin.
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