Profit Margin Calculator
Know your profit after costs and selling fees. Free browser-based tool with no signup or uploads.
Know what you keep
PER SALE
Estimated profit
$42.00
- Profit margin
- 42.00%
- Markup on costs
- 76.36%
- Percentage fees
- $3.00
- Break-even selling price
- $56.70
- Price for your target margin
- $82.09
Fees apply to the selling price. Shipping is your cost, not extra customer revenue. Estimates exclude tax, refunds and overhead unless included in your costs. Margin and markup use different denominators.
A sale is not the same thing as a profit. Product cost, packaging, shipping and payment fees all reduce what you keep. This calculator puts those costs next to your selling price so you can compare a proposed price with a target margin before publishing a listing.
Use it for a single item or a typical order. Keep the basis consistent: if your selling price covers three items, enter the combined product and shipping costs for those three items too. Everything is calculated locally; the tool does not store your business figures.
How to use the Profit Margin Calculator
Enter the cost and selling price
Use the amount you actually pay for the product and the revenue you receive from selling it, excluding any tax collected on behalf of a tax authority.
Add the costs you cover
Include packaging and shipping that you pay. Enter a percentage payment or platform fee and any fixed charge per transaction. Check the provider agreement for your actual fee structure.
Choose a target margin
The target is the share of the selling price you want to keep after the entered costs and fees. It is different from a percentage added to your purchase cost.
Compare the results
Review profit per sale, actual margin, markup, break-even price and the price needed for the target. A negative profit means the proposed sale does not cover the entered costs.
Margin and markup answer different questions
Profit margin divides profit by selling price. Markup divides profit by costs. If an item costs 60 and sells for 100 with no other expenses, the profit is 40. The margin is 40 percent, while markup is about 66.67 percent. Quoting one as the other can lead to a price that looks profitable but misses your target.
This calculator includes product cost, shipping and the fixed fee in the cost base for markup. Percentage fees are deducted from revenue when calculating profit. That makes the displayed markup an effective markup after the selected selling fees, rather than a simple catalog price multiple.
How the target selling price is calculated
First add the product cost, shipping and fixed fee. Divide that total by one minus the percentage fee and target margin, expressed as decimal fractions. For costs of 55, a fee of 3 percent and a target margin of 30 percent, the required selling price is approximately 82.09.
If percentage fees plus target margin reach 100 percent, no finite selling price can meet the request with positive costs. The tool shows that the target is not possible instead of producing an infinite number. At zero selling price, margin is undefined. At zero cost, markup is undefined. These are limits of the formulas rather than missing revenue.
What to include in your costs
Avoid counting an expense twice. If your fulfillment cost already includes packaging, do not add the same packaging amount again. For bundles, returns and promotional discounts, run a separate scenario with the expected total order value and costs.
- Product purchase price or the materials used to make it.
- Packaging, postage and fulfillment charges you absorb.
- The fixed processing charge associated with the sale.
- A reasonable allocation of advertising or overhead, if you want to include it in product cost.
Where the estimate stops
The calculator uses one percentage fee on the selling price. Real platforms may charge different rates on shipping, tax or particular categories, apply minimum fees or round each fee separately. Use a combined approximation only when you understand those rules, and reconcile a few actual settlements before relying on the estimate.
This is an operational pricing estimate, not an income-tax calculation or a statement of net business income. Rent, salaries, damaged stock, refunds and unsold inventory are absent unless you allocate them into the costs. Changing the currency changes the display only; it does not convert exchange rates. Keep all input amounts in the same currency.
Frequently asked questions
Can I use LKR or INR?
Yes. Choose the currency before entering amounts. The calculator supports the same currency choices as the invoice tool, including LKR and INR, without requesting live exchange rates.
Why can a positive markup still give a low margin?
Markup uses your cost as its denominator, while margin uses the selling price. Selling fees also reduce profit. Read both numbers and use margin when deciding what share of a sale you retain.
Does break-even mean my business is profitable?
No. Break-even here covers only the costs entered for this sale. A business must also cover ongoing expenses and other losses across all its sales.
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