Profit Margin Calculator

How to use it

1. Enter your full cost for one unit.
2. Enter the price you sell it for.
3. Read profit, margin (share of the price you keep) and markup (how much you add on top of cost).

Margin versus markup

Margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. A product bought for $10 and sold for $25 has a 60% margin and a 150% markup.

What to count as cost

For ecommerce, cost is usually more than the product: add packaging, shipping you pay, and payment fees for a truer margin. Ad spend is easier to judge separately with the break-even ROAS calculator.

Questions

What is a good profit margin for ecommerce?

It depends on the category and on how much you spend on ads. What matters is that the margin left after product and shipping covers your ad cost per sale with room to spare.

Can margin be higher than 100%?

No. Margin is a share of the price, so it is always below 100%. Markup can be any size.

More free tools

• Shopify Theme DetectorSee which Shopify theme any store runs.
• Shopify Apps DetectorList the apps and pixels a Shopify store runs.
• Break-even ROAS CalculatorThe ROAS and cost per sale where your ads break even.
• Ecommerce Profit CalculatorReal profit per order after costs and ads.
• Customer Lifetime Value CalculatorWhat a customer is worth, and the most to pay for one.
• ROI CalculatorReturn on investment, and per year.
• Shopify Subscription CalculatorSubscribers, MRR and 12-month revenue with churn.
• Shopify Product ExporterDownload any Shopify store's products as a CSV.
• Winning Product FinderProducts getting the most new ads right now.