Ecommerce Margin Calculator
Work out margin on an online order after product cost, shipping and payment fees.
About Ecommerce Margin Calculator
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.
Formula
Ecommerce Margin
Margin % = (Order revenue − Product, shipping and payment cost) ÷ Order revenue × 100
- Order revenue
- Money received
- Product, shipping and payment cost
- Direct cost of delivering it
Worked example
With the default values below, Ecommerce Margin Calculator returns Ecommerce Margin of 36.47%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Order revenueminimum 0
- 85
- Product, shipping and payment costminimum 0
- 54
Results
- Ecommerce Margin
- 36.47%
- Profit
- $31.00
- Markup on Cost
- 57.41%
- Cost as Share of Revenue
- 63.53%
Step by step
- 1Values used
- 2Ecommerce Margin
- 3Ecommerce Margin= 36.47
- 4Profit= 31.00
- 5Markup on Cost= 57.41
- 6Cost as Share of Revenue= 63.53
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Ecommerce Margin calculated?
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.
Why does Ecommerce Margin matter?
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.
What values do I need to enter?
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.