Work out margin on an online order after product cost, shipping and payment fees.
Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup. Margin is what funds every fixed cost in a online store business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
Ecommerce Margin
Margin % = (Order revenue − Product, shipping and payment cost) ÷ Order revenue × 100
Margin % = (Order revenue − Product, shipping and payment cost) ÷ Order revenue × 100 Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup.
Margin is what funds every fixed cost in a online store business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
This calculator takes 2 inputs: Order revenue, Product, shipping and payment cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.