Calculate your gross profit, margin, and markup instantly.
Profit Margin tells you how much of every dollar of sales a company keeps in its earnings. For example, a 20% profit margin means the business has a net income of $0.20 for each dollar of total revenue earned.
This is the most common mistake new business owners make. Margin is based on the selling price (Revenue), while Markup is based on the cost (COGS).
If you buy a product for $50 and sell it for $100, your profit is $50. Your Markup is 100% (because the profit is 100% of your cost). However, your Margin is 50% (because the profit is exactly half of your total selling price).
Whether you are running a Shopify dropshipping store, selling on Amazon FBA, or freelancing, knowing your exact gross margin ensures you leave enough room to pay for advertising, software, and taxes without going into debt.