Guide
How to use the Profit & Margin Calculator
In the Profit & Margin tab, enter per-unit values: the product’s cost price, your selling price, the quantity, shipping and any other costs per unit, and the marketplace fee as a percentage of the selling price. Results update as you type, and Reset restores the example values. Below the results, Calculate Selling Price From Target Margin finds the price you need for a chosen margin. The Discount tab works out sale prices and discount percentages.
The examples below use the calculator’s starting values: cost price $10.00, selling price $25.00, quantity 1, shipping $3.00, other costs $0.00 and a 15% marketplace fee.
Profit
Net profit is what’s left of your revenue after every cost, including the marketplace fee.
Net profit = Revenue − (Product cost + Shipping + Other costs + Marketplace fees)
Example: the fee is 15% of $25.00 = $3.75, so the total cost per unit is $10.00 + $3.00 + $0.00 + $3.75 = $16.75, and net profit is $25.00 − $16.75 = $8.25.
Profit margin
Profit margin = Net profit ÷ Revenue × 100
Example: $8.25 ÷ $25.00 = 33.00%. Margin shows how much of every sale you keep.
Markup
Markup = Net profit ÷ Product cost × 100
Example: $8.25 ÷ $10.00 = 82.50%. This calculator measures markup on the product’s cost price using net profit (after shipping, other costs and fees), so it is lower than a simple (price − cost) ÷ cost figure, which here would be 150%.
Break-even price
Break-even price = (Cost + Shipping + Other costs) ÷ (1 − Fee %)
Example: $13.00 ÷ 0.85 = $15.29. Selling below this price loses money on every unit. The fee is part of the formula because a percentage fee grows as the price grows.
Target margin price
Selling price = (Cost + Shipping + Other costs) ÷ (1 − Fee % − Target margin %)
Example with that section’s starting values (cost $10.00, shipping $2.00, other costs $1.00, a 10% fee and a 30% target margin): $13.00 ÷ 0.60 = $21.67. At that price the fee is $2.17 and the profit is $6.50, a 30.00% margin. The fee plus the target margin must add up to less than 100%, otherwise no price can reach the target.
Discount
Sale price = Original price × (1 − Discount % ÷ 100)
Discount % = (Original price − Sale price) ÷ Original price × 100
Example: 20% off $50.00 is a $10.00 discount, so the sale price is $40.00. Working backwards, $50.00 reduced to $40.00 is a 20.00% discount, and the amount saved is $10.00.
Margin and markup are not the same
People often mix them up. When the product cost is your only cost, the two convert like this (margin = markup ÷ (1 + markup)):
| Markup | Equivalent margin |
|---|
| 25% | 20.00% |
| 50% | 33.33% |
| 100% | 50.00% |
| 200% | 66.67% |
So a “50% markup” keeps only a third of the selling price as profit, which matters when you compare your numbers with a target margin.
Tips for accurate results
- Put fixed per-unit fees in Other costs. The Marketplace fee field is a percentage of the selling price, like a referral fee. Fixed amounts per item, such as fulfillment, packaging, prep, a flat payment fee or advertising spend per unit, belong in Other costs.
- See what a discount really costs. With the example numbers, selling at $20.00 instead of $25.00 (20% off) cuts profit per unit from $8.25 to $4.00, more than half, because your costs stay the same and the fee only falls slightly. Try it by changing the selling price.
- Keep tax consistent. If you collect sales tax or VAT and pass it on, enter prices without it. The calculator doesn’t add or remove tax.
- Any currency works. The dollar sign is only a label; the math is the same in every currency.
Profit calculator FAQs
What is the difference between profit margin and markup?
Profit margin is net profit as a percentage of revenue (profit ÷ revenue). Markup is net profit as a percentage of the product’s cost price (profit ÷ product cost). The same sale always shows a higher markup than margin.
How is the break-even selling price calculated?
It’s the price where profit is exactly zero after all costs and the marketplace fee: (Cost + Shipping + Other costs) ÷ (1 − Fee %). With a 0% fee it simply equals your total unit cost.
How are marketplace fees calculated?
The fee is a percentage of the selling price, similar to the referral fees charged by marketplaces such as Amazon, eBay or Etsy. Enter 0 if you sell without a marketplace, and put any fixed per-item fees in Other costs. Fee rates vary by marketplace and category, so check the current rate.
Why does the target margin show an error?
The fee and the target margin are both taken from the selling price, so together they must stay below 100%. For example, a 15% fee leaves room for a margin of up to just under 85%.
How does the Discount Calculator work?
Enter the original price and a discount percentage to get the discount amount and final sale price. Or enter the original and sale prices to find the discount percentage.
Is my data sent anywhere?
No. Every calculation runs in your browser. Nothing you enter is uploaded or stored on our server.
Is the Profit Calculator free?
Yes, completely free with no account required. Results are estimates, not financial advice; see our Disclaimer.
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