Profit margin calculator
Price and cost are enough to start. Add marketplace fees and shipping and you see what really lands in your account.
Your numbers
What the customer pays.
What you pay for one unit.
Marketplace and payment fees.
Per order.
Packaging, inserts, ads.
Result
Enter your numbers and the result appears here.
How this is calculated
- Revenue is price multiplied by quantity.
- The fee percentage is applied to revenue, matching how marketplace and payment fees are usually charged.
- Total cost is (cost + shipping + other) x quantity, plus the fee.
- Profit is revenue minus total cost; margin is profit divided by revenue.
- Markup (profit over cost) is shown separately because it is easy to confuse with margin.
- The break-even price is the price at which profit reaches zero: (cost + shipping + other) / (1 - fee rate).
Formula
- Revenue
revenue = price x quantity- Fee
fee = revenue x fee rate- Profit
profit = revenue - (cost + shipping + other) x quantity - fee- Margin
margin (%) = profit / revenue x 100- Break-even price
(cost + shipping + other) / (1 - fee rate)
Worked example
Price 20.00, cost 10.00, marketplace fee 10%, shipping 3.00, packaging 0.50.
- Revenue 20.00, fee 2.00
- Costs: 10.00 + 3.00 + 0.50 = 13.50, plus the 2.00 fee = 15.50
- Profit: 20.00 - 15.50 = 4.50
Each sale keeps 4.50, a margin of 22.5%. The break-even price is 15.00 — below that, every sale loses money.
Things to watch for
- Sales tax or VAT is not included. If your prices include tax, enter tax-exclusive figures for a true margin.
- Returns, refunded shipping, advertising and coupon costs are extra. Add an average per-order allowance under other costs.
- Marketplace fees vary by category, and payment processing is sometimes charged on top.
- Margin (on revenue) and markup (on cost) are different numbers — agree which one you mean before quoting it.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by revenue; markup is profit divided by cost. Buying at 10 and selling at 20 is a 50% margin but a 100% markup — the same deal, two very different numbers.
Should I enter prices with or without tax?
Use tax-exclusive figures for both price and cost if you are registered for VAT or sales tax. Mixing the two overstates your margin.
Can I include advertising?
Yes — put your average advertising cost per order under other costs. To judge the advertising itself, use the ROAS calculator.
What is the break-even price for?
It is the lowest price at which a sale still covers its own costs. Use it as the floor when planning discounts.
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Last reviewed: August 25, 2026
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