Calculate profit margin — profit as a percentage of revenue, not cost.
Margin = profit ÷ revenue. Markup = profit ÷ cost. Same deal, two different denominators — markup is always the larger number, and the two are easy to mix up when pricing inventory.
Margin
46%
of revenue
Markup
85%
of cost
Total Cost = Price + Freight Profit = Revenue − Total Cost Margin % = (Profit ÷ Revenue) × 100
Margin measures profit against revenue — the total you expect to bring in from resale. It answers "of every dollar in sales, how much is profit?" Retailers and resellers use margin to think about pricing strategy and compare against typical retail margins (often 20-50% depending on category).
Price $1,200 + freight $150 = total cost $1,350. Revenue (resale value): $2,500.
Profit = $2,500 − $1,350 = $1,150 Margin = ($1,150 ÷ $2,500) × 100 = 46%
Compare this to the ROI calculator on the same numbers: ROI comes out to 85%, margin to 46% — same deal, two different lenses. Margin will always read lower than ROI on a profitable deal, since revenue is always larger than cost.
This calculator also shows markup (profit ÷ cost) next to margin (profit ÷ revenue) — the two numbers buyers mix up most often when pricing resale inventory. On the example above, markup is 85%, identical to ROI, because both divide the same profit by the same cost base.
Browse live inventory and run these numbers on an actual pallet.
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