1. Enter Price and Cost
$
$
2. Your Margins & Markup
Gross Margin:
66.7%
Markup Percentage:
200.0%
Gross Profit per Unit:
$30.00
Formulas: gross margin is profit divided by selling price, and markup is profit divided by cost. Both ignore shipping, platform fees and ad spend, so use the TikTok Shop Profit Calculator for net profit. Last reviewed 15 Oct 2026.
Understanding Margin vs. Markup
One of the most frequent accounting mistakes in direct-to-consumer e-commerce is confusing profit margin with markup:
- Gross Margin: Shows what percentage of each dollar earned you get to keep after paying inventory cost ($30 profit on a $45 sale is a 66.7% margin).
- Markup: Shows how much you marked up the original supplier cost to set the retail price ($30 profit added to a $15 cost is a 200% markup).
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