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E-Commerce & Retail

Browse all 7 e-commerce & retail tools

What is e-commerce calculators?

E-commerce calculators work out the numbers behind selling: what a product costs you, what to charge for it, how a discount or a platform fee moves the margin, and how much tax to add at checkout.

Formula & Methodology

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Did you know? Markup and margin are not the same number. A 50% markup on a $10 cost gives a $15 price, which is a 33.3% margin. Mixing the two up is the most common pricing error in retail, and it is why the Markup & Margin Calculator shows both at once.

Sources

  • U.S. Small Business Administration (SBA): Pricing and break-even guidance for small retailers
  • OECD: International VAT and Goods and Services Tax guidelines

Frequently Asked Questions

Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. The same dollar of profit gives a higher markup figure than margin figure, so always say which one you mean.

It varies by category. Physical products commonly run 10% to 30% net, while digital goods can be far higher. Work out your break-even first, because a healthy margin on too few units still loses money.

Sales tax is added on top of the listed price and varies by US state and locality. VAT is normally already inside the displayed price in the UK and EU. Both calculators handle amounts inclusive and exclusive of tax.

Divide fixed costs by the contribution margin per unit, which is the selling price minus the variable cost per unit. The Break-Even Calculator does this and shows the revenue figure that goes with it.