Profit Margin Calculator
Margin, markup and cost ratio
Example: a price of 10,000 with a cost of 6,000 gives a 40% margin. Add marketplace fees and shipping to see your real margin.
What the customer pays
Purchase or production cost
Optional
Shipping, ads โ optional
Margin is profit รท price; markup is profit รท cost. Tax is not included. Marketplace fees and other costs are subtracted to show your real margin. For guidance only.
Work out profit margin, markup and cost ratio from your price and cost, including fees and shipping. Reverse-calculate the price you need for a target margin โ a free margin calculator for sellers.
How to use
- Enter your selling price and your cost.
- Margin, markup, cost ratio and profit are calculated instantly.
- Add marketplace fees and shipping for a realistic net figure, or enter a target margin to get the price you should charge.
FAQ
- Q. What is the difference between margin and markup?
- A. Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 50% markup is only a 33.3% margin, so mixing them up overstates your profit.
- Q. How do I price for a target margin?
- A. Enter your cost and the margin you want, and the calculator gives you the selling price that achieves it โ including fees if you add them.
- Q. Should fees be included?
- A. Yes, if you sell through a marketplace. Commission and shipping come out of the same revenue, so leaving them out makes the margin look better than it is.
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