Margin
35.0%
Free calculator
Type revenue and cost. Profit and margin move as you type. This is the simplest version, no shipping, fees, or returns folded in. No email, no gate, nothing leaves this page.
The calculator
The boxes start filled with an illustrative example, not a benchmark. Replace it with your own numbers.
Total sale amount, before cost comes out. Should exclude VAT or sales tax collected on top.
Whatever single cost figure you want to net against revenue. For e-commerce this is usually cost of goods sold.
Profit
$100.00 in revenue against $65.00 in cost leaves $35.00 in profit, a 35.0% margin.
profit = revenue - cost margin = profit / revenue * 100
This is the simplest possible version of profit margin: one revenue number, one cost number. It does not know what's inside "cost", and it does not separate gross margin from net margin. Use it as a quick gut check, not a full P&L.
See it on your own data Real numbers from your Shopify store, not a guess.
"Cost" here is whatever single number you typed in. This tool has no way to know whether that's a COGS-only figure, a landed cost, or an all-in number that already includes shipping and fees, and mixing those up is the most common way this kind of quick math goes wrong. Revenue is also a raw figure: if it still has VAT, sales tax, or returns baked in, the margin above will be off.
If cost, for you, means product cost specifically, the COGS calculator linked above breaks that number down into its parts instead of treating it as one blended figure.
Questions
It varies by what question you're trying to answer. For a quick e-commerce gut check, cost usually means cost of goods sold, the product cost itself. A fuller number would also net out payment processing, shipping, and other costs that scale with the sale. This calculator takes whatever single figure you type in, so it's on you to be consistent about what's inside it.
There is no single answer, it depends heavily on category. Gross margins alone commonly land anywhere from the low 40s to low 70s percent depending on the category, before other variable costs even come out. Treat any flat "good margin" number with suspicion and compare against your own category rather than a universal benchmark.
Margin divides profit by revenue (or price). Markup divides the same profit dollar amount by cost instead. Because revenue is always the larger number when you're making money, margin is always a smaller percentage than markup for the same sale.
It shouldn't. Revenue here is meant to be the amount you actually earned from the sale, with VAT or sales tax collected on behalf of a government excluded. If tax is still mixed into your revenue figure, both the profit dollar amount and the margin percentage above will be overstated.
Neither one specifically, and that's a limitation, not a feature. This is a generic two-number calculation. Whether it lands closer to gross margin or net margin depends entirely on what you typed into the cost box: a COGS-only figure gets you closer to gross margin, an all-in cost figure gets you closer to net margin.
Next
Upstream reads real per-order cost, real per-SKU landed cost, and real per-order shipping straight from your store, and nets ad spend and returns against it too. It is the connected version of the calculator above.