Calculate gross profit and margin on a single product from its price and landed cost.
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 product business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
Product Margin
Margin % = (Selling price − Landed unit cost) ÷ Selling price × 100
Margin % = (Selling price − Landed unit cost) ÷ Selling price × 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 product business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
This calculator takes 2 inputs: Selling price, Landed unit 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.