General-Purpose Ecommerce Calculator: Easily calculate gross profit, margin %, markup %, and ROI % in forward mode, or toggle to Reverse Mode to derive the required selling price for any target margin.
Calculator Mode
Standard Profit & Margin Calculation
Forward Calculation Inputs
Live calculation$
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Profit SummaryProfitable
Gross Profit / Unit
$21.99
55%
Profit Margin
176%
Markup %
176%
ROI %
Cost vs Fees vs Profit SplitRevenue Ratio
Cost: 31.3%
Fees: 13.8%
Profit: 55.0%
Frequently Asked Questions — Profit Margin, Markup & ROI
Key insights into pricing formulas, markup ratios, and return on investment
What is the difference between Profit Margin % and Markup %?
Profit Margin % measures how much profit you keep from every dollar of selling price (Profit ÷ Price × 100). Markup % measures how much you mark up the cost of the product to reach your selling price (Profit ÷ Cost × 100).
Why do Markup % and ROI % share the same mathematical formula?
Both Markup % and ROI % equal (Profit ÷ Unit Cost × 100). However, Markup is framed from a pricing perspective (how much above cost you price an item), whereas ROI (Return on Investment) measures the financial return generated on your invested capital.
How does Reverse Margin mode calculate the required selling price?
Reverse mode uses the formula: Selling Price = (Unit Cost + Fixed Fees) ÷ (1 − Desired Margin % − Fee Rate %). This derives the exact retail price needed to achieve your exact profit margin goal.
What is a good profit margin for ecommerce sellers?
A healthy gross profit margin for ecommerce businesses typically ranges between 20% and 40%, while an ROI of 50% to 100%+ is considered strong for physical product inventory.
How should total fees and shipping expenses be included?
You should add all per-unit fulfillment fees, platform commission rates, payment processing, and inbound shipping into the 'Total Fees/Expenses' field to get a realistic net profit figure.
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