Free tool · Sales

Profit margin calculator

Enter your cost and price to see your margin, markup and profit per unit. Or tell us the margin you want and we'll tell you what to charge.

  • Free
  • No sign-up
  • Works on your phone
  • Your data stays in your browser

What do you want to calculate

What do you want to calculate

Enter your cost and selling price: we'll tell you what you really make.

Your numbers

What it costs you to buy or make one unit.

What you charge the customer for one unit.

For example, this month's. Used to show the totals.

More options Other costs, fees and tax

Shipping, packaging, bags: what you pay for each unit. If shipping is per order, divide it by the units in the order.

The payment processor's or marketplace's cut of what you charge.

Your result

Profit margin — Enter your cost and your selling price.
Profit per unit — Gross: before your fixed costs
Markup — Profit over cost
Out of every $100 you charge
  • Cost —
  • Profit —

Enter how many units you sell to see total revenue, cost and profit.

How it is calculated

Margin = (price − cost) ÷ price × 100 Markup = (price − cost) ÷ cost × 100

Margin compares your profit with what you charge; markup, with what it cost you. That's why, with the same numbers, margin is always lower.

The copied text is ready to paste into WhatsApp. For the PDF, the print window opens: choose “Save as PDF”.

What if you give a discount?

A discount comes out of your profit, not your cost. See how many more units you'd have to sell to make the same.

Applied to the price you charge; your costs don't change.

Margin with discount — Before: —
To make the same — Units you need to sell

Enter your cost and price to see the effect of a discount.

Common discounts at your margin
DiscountNew marginTo make the same
5 %——
10 %——
15 %——
20 %——
25 %——

Your profit margin is the share of each sale you actually keep after paying for the product, shipping, packaging and payment fees. It's the number that tells you whether a discount pays off, how much you can spend on ads or whether you're quietly selling below cost.

How to calculate profit margin

Margin = (selling price − cost) ÷ selling price × 100

Say you sell a printed T-shirt for $50 and it costs you $28 to make. You keep $22 per shirt, so your margin is $22 ÷ $50 = 44%. Add $4 of shipping and packaging per order and your total cost is $32: profit drops to $18 and margin to 36%. That's why the calculator has fields for other costs and a percentage fee.

Margin vs. markup

Margin compares profit with the price; markup compares it with the cost. A product that costs $70 and sells for $100 has a 30% margin and a 42.9% markup. Mixing them up is how prices end up too low: if you want a 30% margin and add 30% to a $70 cost, you charge $91 and your real margin is only 23.1%. The right way is to divide: price = cost ÷ (1 − margin), so $70 ÷ 0.7 = $100.

What a discount does to your margin

A discount comes straight out of your profit, not your cost. With a 30% margin, a 10% discount means you need 30 ÷ (30 − 10) = 1.5 times the units, or 50% more, to make the same profit. If the discount equals your margin you make nothing; if it's bigger, you lose money on every sale. Sending the offer to a customer? The quote generator builds it with the discount applied.

Sales tax isn't part of your margin

In the US, sales tax is usually added on top of your price at checkout, so your shelf price is already the number to use. If your price includes tax, check “The price includes tax” and type the rate: the calculator removes it before working out the margin. When you're ready to track margins across every order, see Zavora's pricing.

FAQ

Questions businesses ask before starting

How do I calculate profit margin?

Subtract the cost from the selling price and divide by the price: margin = (price − cost) ÷ price × 100. If you sell for $100 something that costs you $70, you make $30 and your margin is 30%.

What's the difference between margin and markup?

Both measure the same profit. Margin compares it with the price; markup compares it with the cost. With a $70 cost and a $100 price, margin is 30% and markup is 42.9%. To convert: markup = margin ÷ (1 − margin).

Should I include sales tax in the price?

No. Tax you collect isn't yours, so margin is calculated on the price before tax. In the US sales tax is usually added on top at checkout, so just enter your shelf price. If your price already includes tax, check “The price includes tax” and type the rate.

Is it free?

Yes. No sign-up and no limit. Everything is calculated in your browser, and your costs and prices are never sent to our servers.