Margin · Unit economics
Separate margin
from markup.
See what remains after product cost, fees, shipping, and advertising—and compare profit to both revenue and cost.
Estimated profit
$16.00Total cost$34.00
Net margin32.0%
Markup on cost47.1%
Margin is profit divided by revenue. Markup is profit divided by total cost; they answer different questions.Formula
Profit ÷ revenue is margin. Profit ÷ cost is markup.
A $50 sale with $34 in total costs produces $16 profit: 32% net margin and 47.1% markup. Include returns, overhead, taxes, and other business-specific costs when evaluating a real product.