This margin estimator calculates gross margin for a physical product from selling price and direct unit costs. It separates gross profit per unit from margin percentage so operators can evaluate pricing, sourcing, fulfillment, and promotion decisions on a comparable basis.
Enter the costs that vary directly with the sale, such as product cost, packaging, payment or marketplace fees, and outbound fulfillment. Fixed overhead and customer acquisition costs are excluded unless you deliberately include them in the additional variable-cost field.
1. Enter selling price. Use values from the same product, SKU group, and reporting period.
2. Enter product cost. Use values from the same product, SKU group, and reporting period.
3. Enter fulfillment and packaging. Use values from the same product, SKU group, and reporting period.
4. Enter selling fees. Use values from the same product, SKU group, and reporting period.
5. Review the result. The calculator updates automatically as inputs change. Use Reset to restore the example values.
The displayed value summarizes estimated gross margin using the inputs entered above.
Use consistent units and matching reporting periods. Results are estimates for planning and review.
Given: $79 price, $28 product cost, $7.50 fulfillment and packaging, and $6.20 selling fees.
Calculation: gross profit = $79 − $28 − $7.50 − $6.20 = $37.30. Margin = $37.30 ÷ $79 × 100 = 47.22%.
Result: Estimated gross margin is 47.22%.
No. Margin divides profit by selling price; markup divides profit by cost.
Usually track acquisition cost separately, unless you want a contribution-margin view.
Convert them to a per-unit amount at the chosen selling price before entering them.
Yes. That means direct variable costs exceed the selling price.
No. Net profit also reflects fixed overhead, payroll, taxes, and other expenses.