Price is the one lever that changes profit with no extra cost, and the math behind it is small but unforgiving. The profit margin calculator shows what a price keeps after costs, and the markup calculator works the other direction, from cost up to price. Confusing the two is the classic mistake: a 50% markup is only a 33% margin, and the margin vs markup calculator exists because that mix-up quietly underprices thousands of stores.
From there the questions get more specific. The break-even units calculator tells you how many sales a price must produce before fixed costs are covered. Discount math shows what a 20%-off sale really costs in margin, and the wholesale and keystone tools handle two-tier pricing for merchants selling to retailers as well as consumers.
The through-line: set price from cost and target margin, then sanity-check the volume that price demands. A price that needs unrealistic volume to break even is a wrong price, no matter how competitive it looks.
Frequently asked questions
What is a good profit margin for an e-commerce product?
Gross margins of 50–70% are typical for healthy DTC products, which usually means pricing at 3–4x landed cost. That gross margin then has to fund marketplace fees, shipping, and advertising, which is why most e-commerce stores net only 5–15%. If gross margin is under 40%, there is rarely room left to advertise the product profitably.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. The same $10 profit on a $30 sale is a 33% margin but a 50% markup. Because margin uses the bigger denominator, it is always the lower number. Say which one you mean in every pricing conversation: suppliers usually talk markup, retailers talk margin.
How do I price a handmade or private-label product?
Start from full cost: materials or landed cost plus labor, packaging, and a per-unit share of fees and shipping. Then apply a target margin instead of copying competitors. A common floor is 4x materials cost for handmade goods and 3x landed cost for private label, which leaves room for wholesale, discounts, and advertising without dropping below break-even.
When should I raise prices?
Sooner than feels comfortable. A 10% price increase on a 30%-margin product grows profit by a third even if some volume is lost, and the math shows exactly how many customers you can afford to lose. Raise prices when costs rise, when conversion stays strong, or when you are the cheapest credible option in the category, and test on new traffic first.
More calculator collections
- Advertising & ROAS calculators — Break-even and target math for paid traffic: ROAS, ACOS, budgets and click economics.
- Marketplace & Payment Fees calculators — What Amazon, Etsy, eBay, Shopify and payment processors really take from each sale.
- Unit Economics calculators — CAC, LTV, AOV and contribution — whether each customer earns more than they cost.
- Shipping & Landed Cost calculators — Landed cost, duty and freight — the true per-unit cost of getting goods to the door.
- Inventory calculators — Reorder points, EOQ and turnover — holding enough stock without drowning in it.
- Conversion & Email calculators — Conversion rates, cart abandonment and email ROI — squeezing more from existing traffic.
- Store Finance calculators — Cash cycles, runway and growth — the money mechanics behind the storefront.