Question
What is the difference between margin and markup?
Margin measures profit as a percentage of selling price, while markup measures profit as a percentage of cost. They are related but not interchangeable.
Ecommerce
Use OmniCalc's margin calculator to estimate gross profit, profit margin, markup, and cost share from selling price and total cost.
Margin calculator
Enter selling price and total cost to estimate gross profit, profit margin, markup, and cost share for a product or offer.
Why this result matters
A practical ecommerce pricing tool that deepens the new live category with a cleaner margin-specific calculator next to Product Profit. Use the tool above to enter a few clear inputs and get a practical answer you can use right away.
This margin calculator helps ecommerce sellers, operators, and pricing teams check how much gross profit is left after cost and what that means as a percentage of selling price. It is useful because margin and markup are often confused, but both matter when pricing products, bundles, and promotional offers.
Formula and method
The calculator subtracts total cost from selling price to estimate gross profit, then divides that profit by selling price for margin and by total cost for markup. It also shows cost share as the percentage of price consumed by cost.
Example
If a product sells for $49.99 and total cost is $35.00, the calculator estimates gross profit, gross margin, markup, and the share of price consumed by cost.
FAQ
Short answers to the questions people often ask before or after using the tool.
Question
Margin measures profit as a percentage of selling price, while markup measures profit as a percentage of cost. They are related but not interchangeable.
Question
Once all direct costs are combined into a total cost number, you can evaluate profit and margin without needing to model each cost line separately.
Question
Cost share shows how much of the selling price is consumed by cost before any profit is left. It is a fast way to see how tight or healthy a price structure is.
Pricing guide
Use the support guides when the real question is whether you are pricing from cost, judging profit inside the selling price, or checking the operating room left after variable costs.
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