Calculators for an online store: margin, markup, discount and ROAS

Margin and markup from a cost and a price

A product bought for 60 and sold for 100 has a 40% margin and a 66.7% markup. Margin is a share of the price, markup a share of the cost. Enter both figures and you get both numbers, plus the gross profit per item.

margin = (price − cost) / price
markup = (price − cost) / cost

Open the margin vs markup calculator

Selling price from a cost and a target margin

Want a 30% margin? Divide the cost by 0.7 instead of adding 30% to it. Adding 30% to a cost of 100 gives a price of 130, and a margin of only 23.1%. The same calculator works this way round too.

price = cost / (1 − margin)

Work out a price from a margin

How much more to sell after a discount

At a 30% margin, 20% off means selling three times as many to earn the same profit. You set a discount as a share of the price, but you pay all of it out of your profit. The calculator also works the other way round: from the sales increase you expect to the largest discount that still pays off.

times as many items = margin / (margin − discount)

Open the discount margin calculator

Break-even ROAS

A ROAS of 3 at a 25% margin is a loss: $100 in ads brings $300 in sales, which leave $75 of profit. The ads pay for themselves only above 1 divided by your margin, which at 25% is 4.

break-even ROAS = 1 / margin

Open the break-even ROAS calculator and video

Where the margin comes from

Every calculator here needs a margin, and an average margin for the whole store hides the products that carry it and the ones that do not. In WooCommerce, the margin of each product and category comes from the cost recorded on every order. Merchgain, a free plugin, reads that cost and shows gross profit and margin per product, per category and per period. You can see a sample report before installing anything.