E-commerce Margin Calculator
Calculate your gross margin, net margin after fees and markup in seconds. Free, no signup required.
Everything is calculated live in your browser, nothing is sent.
Product selling price.
Purchase or manufacturing cost of the product.
Average shipping cost per order.
Percentage taken by the payment processor (Stripe, PayPal, etc.).
Average advertising cost to generate one sale (CPA).
Real profit after COGS, shipping, transaction and ads.
Percentage of real profit on the sale price.
Margin percentage before additional fees.
Multiplier applied to the cost of goods.
Your net margin is healthy. You generate real profit after all costs.
Gross vs net margin: the difference that changes everything
Gross margin only considers COGS. Net margin includes all real costs: shipping, transaction, advertising. A product with 60% gross margin can have 5% net margin if ad and logistics costs are high. Net margin determines whether your business is viable.
$50 - $20 = $30 gross margin (60%)
$50 - $20 - $5 - $1.50 - $12 = $11.50 (23%)
$50 / $20 = 2.5x markup
Frequently asked questions
What's the difference between gross and net margin?+
Gross margin = price - COGS. Net margin includes all costs: shipping, transaction, advertising. Net margin is what matters to know if you're actually making money.
What net margin should I aim for in e-commerce?+
Between 15% and 30% is considered healthy. Below 10%, your business is fragile. Above 30%, you have room to scale aggressively.
How do I improve my net margin?+
Four levers: negotiate COGS, optimize shipping costs (thresholds, negotiated rates), reduce transaction fees (negotiate with Stripe/PayPal), and lower CPA (better targeting, creatives, conversion).
Are markup and margin the same?+
No. Markup is the multiplier on cost (COGS x markup = price). Margin is the percentage of price that is profit. A 2x markup gives 50% gross margin, not 100%.
Does this calculator include taxes?+
No. Enter prices with or without tax, but be consistent. For automated calculation including all taxes and real costs, Fullmetrix does it on every order.
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