Profit Margin Calculator
Enter what a product costs you and what you sell it for to see your real margin, markup and profit per unit, or work backward to the right price.
What one unit costs you to make or buy.
What the customer pays for one unit.
Other costs per unit
Percent of the selling price.
e.g. a per-transaction charge.
Your numbers (per unit)
Enter a cost and a selling price to see your margin.
Margin is profit as a share of the selling price. Markup is profit as a share of your cost. A $60 item sold for $100 has a 40% margin but a 66.7% markup.
Planning a merch run?
See custom patch pricing before you set your retail price.
See Custom Patch Pricing →The formulas
- Total cost = product cost + shipping + packaging + fees + ad spend + other costs
- Profit = selling price − total cost
- Margin = profit ÷ selling price × 100
- Markup = profit ÷ total cost × 100
- Price for a target margin = costs ÷ (1 − margin − % fees)
Margin vs. markup in practice
Retailers and wholesalers often talk in markup ("keystone" means a 100% markup, or doubling the cost). Accountants and investors usually look at margin. A 100% markup is only a 50% margin, so mixing them up can make a product look far more profitable than it is.
Common mistakes
- Leaving out marketplace and payment fees, which are charged on the selling price.
- Forgetting free-shipping costs you absorb.
- Using margin and markup interchangeably when setting prices.
Launching a clothing line? Build sizing with the Size Chart Generator and set up product codes with the Barcode / SKU Generator.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit divided by the selling price. Markup is profit divided by your cost. If something costs $60 and sells for $100, the $40 profit is a 40% margin but a 66.7% markup. Margin can never reach 100%; markup can go far higher.
How do I work out what to charge?
Switch to “What should I charge?”, enter your costs and the margin you want. The price is your costs divided by (1 − margin − % fees). For $60 of cost and a 40% margin with no fees, that's $100.
Should I include shipping and fees?
Yes, if you pay them. Marketplace, payment and ad costs often decide whether a product is actually profitable, so the calculator lets you add them per unit.
Is this gross profit or net profit?
It's profit per unit after the costs you enter. It doesn't include overheads like rent, salaries or software, so your business-wide net profit will be lower.
Does it work in pounds or euros?
Yes. The math is the same in any currency. Just enter all values in the same one.