Product Margin Calculator
Calculate gross and net margin, markup, and break-even for up to 3 products. Find your ideal selling price for target margins.
Product Pricing
Amazon/Shopify/eBay fee %
Stripe/PayPal ~2.9%
Warehouse, software, etc.
Gross Margin
61.2%
$24.49 gross profit
Net Margin
49.7%
$19.86 net profit
Markup
158.0%
Above total cost
Profit per Unit
$19.86
After all fees
Recommended Pricing for Target Margins
| Target Margin | Min. Price |
|---|---|
50% | $35.15 |
60% | $45.45 |
70% | $64.32 |
Break-even
26 units/month
To cover $500 fixed costs at $19.86/unit net profit
Product Margin Calculator — Gross Margin vs Net Margin
Gross margin = (Selling Price − Cost of Goods − Shipping) / Selling Price. It excludes platform fees, payment fees, and returns. Net margin includes all costs including platform fees (Amazon: 8–20%, Shopify: 0.5–2%, eBay: 12.9%), payment processing (Stripe/PayPal: 2.9% + $0.30), return rate impact, and ad spend per unit. For a healthy ecommerce business, aim for a net margin of 20–30%. Markup is how much you add on top of cost: a $10 product sold at $25 = 150% markup = 60% margin. Note: markup and margin are different metrics. Break-even units = Fixed Monthly Costs ÷ Net Profit Per Unit.