Free calculator
Margin and Markup Calculator for Shopify Stores
Enter what a unit costs you and what you sell it for to see your gross margin, markup and profit per unit. Or set a target margin to get the price that hits it.
Gross margin
60.0%
Markup: 150.0%
Profit per unit: $18.00
Price for a 50% margin
$24.00
That's a 100.0% markup on cost.
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Margin versus markup
Margin is profit as a share of the selling price. Markup is profit as a share of cost. A product that costs $12 and sells for $30 has a 60% margin and a 150% markup. Mixing the two up is a common way to underprice.
The formulas
Gross margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. Price for a target margin = cost ÷ (1 − target margin). Cost here is your unit cost; add packaging and handling if you want them covered.
Full walkthrough: Wholesale vs retail pricing: how to set the gap.