Profit Margin Calculator
Work out gross profit, margin, markup, and a target selling price without any signup or backend processing.
Quick answer
Profit Margin Calculator helps estimate the result from your inputs in the browser. Use the output as a planning number, then compare it with your records, provider terms, or official guidance before making a final decision.
This calculator provides estimates only. Double-check with your own accounting before pricing or margin decisions.
Calculator
Results update as you type
Gross profit
Gross margin is 50% before fees, shipping, discounts, returns, taxes, and overhead.
Breakdown
Example
Cost $10.00 and sell for $20.00 gives a gross profit of $10.00 and a 50% margin.
Formula
The math behind the result
How it works
A clean flow from input to answer
- 1Enter your cost and selling price.
- 2Add a target margin if you want an inverse price check.
- 3Read margin, markup, and gross profit immediately.
FAQ
Common questions
What is profit margin?
Profit margin is the percentage of sales left after the cost of goods sold is removed from revenue.
How is markup different from margin?
Markup measures profit against cost, while margin measures profit against selling price.
Can this handle a loss?
Yes. If selling price is below cost, gross profit becomes negative and the margin reflects the loss.
Can I use this for Etsy or Shopify pricing?
Yes. The calculator is a clean baseline before platform fees are layered on top.
Does the calculator store my numbers?
No. The calculations run in the browser and the page does not send your inputs to a backend.
Read gross margin as a diagnostic, not net profit
If an item costs $60 and sells for $100, gross profit is $40 and gross margin is 40%. That figure measures the spread between selling price and the entered direct cost. It does not automatically include payroll, rent, advertising, payment processing, returns, tax, or owner compensation.
Use the target-margin output to work backward from the economics you need. A 40% target on an $80 direct cost requires a $133.33 price before extra percentage fees. If a marketplace also charges on revenue, include that channel cost with the dedicated pricing tools before publishing the price.
Compare like with like across products. One product may show a higher percentage but produce fewer profit dollars, turn inventory slowly, or create more support work. Contribution dollars, sales velocity, return rate, and cash tied in stock are useful companion measures.
Negative or tiny margins usually point to an input problem or an unsustainable offer. Confirm whether cost includes the complete landed amount and whether price is tax-inclusive. Use accounting reports for final business performance because this calculator evaluates one simplified transaction at a time.