AlusLabs

AlusLabs

Product Margin Calculator

Calculate gross margin, markup, profit per unit, and break-even volume. Supports desired margin pricing.

Optional fixed cost inputs

Results

Selling price

$49.99

Profit per unit

$24.99

Margin %

49.99%

Markup %

99.96%

Break-even units

81

Monthly net profit

$2,998.00

Tip: share this calculator by copying the URL—your inputs are saved in the query string.

The product margin calculator shows you the difference between what you pay for a product and what you sell it for — as both a margin percentage and a markup percentage. Many e-commerce sellers confuse margin and markup, but the difference matters: a 50% markup on a $20 item means selling at $30 (33% margin), not 50% margin. This tool calculates both, plus your break-even volume if you enter your fixed costs.

How to calculate product margin

Gross profit per unit = Selling price - Cost Margin % = Profit ÷ Selling price × 100 Markup % = Profit ÷ Cost × 100 Break-even units = Fixed costs ÷ Profit per unit

FAQ

What's the difference between margin and markup?expand_more
Margin is profit divided by selling price. Markup is profit divided by cost. They are not the same.
How do I calculate profit margin?expand_more
Profit margin = (Selling Price - Cost) ÷ Selling Price × 100.
How do I calculate markup?expand_more
Markup = (Selling Price - Cost) ÷ Cost × 100.
What margin should e-commerce products have?expand_more
It depends on your niche and CAC/returns. Many DTC brands target 50–70% gross margin, but this varies widely.
How do fixed costs affect my profitability?expand_more
Fixed costs reduce net profit. The break-even calculation shows how many units you need to cover those fixed costs.

Need help implementing automation?

If these numbers look meaningful, we can help you automate the underlying workflows—so you capture the savings.

Contact AlusLabs