Understanding your estimate
Revenue is not profit. Account for unit costs, platform fees, shipping and applicable sales taxes.
This tool helps with planning; it is not a quote, invoice or professional advice. Adjust the defaults to your own situation instead of treating them as national averages.
Comparing different scenarios
Try changing one input at a time to see which cost has the greatest effect. To compare two scenarios, write down the first result before moving the sliders again.
Use the reset button to return to the starting values.
Markup, margin and profit are not the same
Markup is calculated against cost; gross margin percentage is calculated against selling price. Include payment processing, shipping, packaging, returns, advertising and marketplace fees. Sales tax or VAT collected is not business profit.
Example: an item costing $40 and selling for $60 has $20 gross profit before other costs: 50% markup but 33.3% gross margin.
How do I set a profitable selling price?
Start with total unit cost, test different selling prices and volumes, and ensure the contribution covers fixed overheads.
Frequently asked questions
How do I use this calculator?
Move the sliders or enter a number. Results update instantly without signing up.
Is this result exact?
No. This is an estimate based on your assumptions. Actual prices, contracts, taxes and costs may vary.
Are my values saved?
Yes, only in this browser’s local storage. Reset the calculator or clear your browser data to remove them.
What is the difference between markup and gross margin?
Markup divides gross profit by cost; gross margin divides it by selling price. They produce different percentages for the same product.
How should marketplace fees affect product pricing?
Add platform commissions, payment processing, packaging, shipping and expected returns to unit costs before calculating profitability.