Practical financial guides for e-commerce sellers and business owners. Learn about profit margins, pricing strategies, and common calculation mistakes.
Industry average gross margin benchmarks — SaaS 70–90%, restaurants 55–70%, apparel 45–60%, grocery 20–30% and more — plus how to benchmark your own margin properly.
Convert markup to margin with one formula: margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin). Derivation, full conversion table, and memory tricks.
Five ways to calculate the break-even point: the BEP formula, contribution margin, sales-revenue method, the graphical method, and target-profit reverse solving — with a worked example.
Markup made simple — the three formulas you need: markup = profit ÷ cost; price = cost × (1 + markup); markup = margin ÷ (1 − margin). Includes a conversion table.
How to calculate profit as a percentage: profit margin = profit ÷ revenue × 100%. Gross vs net vs markup explained with examples, plus the reverse formula for setting targets.
How to calculate gross margin in one formula: margin = (price − cost) ÷ price × 100%. Step-by-step examples, the reverse formula for pricing, and common mistakes.
Avoid these 5 common profit calculation mistakes that cost e-commerce beginners money. Learn how to use a profit calculator to catch errors and improve your pricing.
Margin and markup are not the same — using the wrong one can swing your prices by 30%. Learn the difference and why margin is the metric you should use.