Profit Margin Calculator
Enter your total cost per unit and your selling price. The calculator shows profit, margin and markup, and the price you need to hit a target margin or markup.
How it works
Profit margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. A product that costs $12 and sells for $30 has an $18 profit, a 60% margin and a 150% markup.
To hit a target margin, price = cost ÷ (1 − margin). To hit a target markup, price = cost × (1 + markup). Include marketplace fees in your cost – the fee calculators linked below work them out per platform.
Frequently asked questions
How do I calculate profit margin?
Subtract cost from price to get profit, then divide by price. ($30 − $12) ÷ $30 = 60%.
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% margin equals a 100% markup.
What price do I need for a 40% margin?
Divide your cost by (1 − 0.40). A $12 cost needs a $20 price.
Should platform fees be in the cost?
Yes. Marketplace and payment fees are real costs per sale. Use the Amazon, Etsy, Shopify, PayPal or eBay calculators to find them, then include them here.