Enter what an item costs you and what you sell it for. Add a target margin to get the price you need.
Profit margin
–
(Price − cost) ÷ price
Profit per sale
–
Markup
–
(Price − cost) ÷ cost
Price for your target margin
–
Profit at that price
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What is the Profit Margin Calculator?
Profit margin tells you how much of every sale you keep. It is the number that decides how much you can spend on ads, affiliates and discounts.
Enter your cost and selling price to see margin, profit and markup — and add a target margin to get the exact price you need.
How to use the Profit Margin Calculator
- Enter your cost per item — product, fulfilment and payment fees.
- Enter your selling price.
- Optionally enter a target margin to get the price that reaches it.
Understanding your results
- Profit margin
- (Price − cost) ÷ price. A 60% margin keeps $60 of every $100 sale.
- Markup
- (Price − cost) ÷ cost. Markup is always higher than margin for the same item.
Frequently asked questions
What is a good profit margin?
It depends on the business: digital products often run 80–95%, e-commerce 30–50%, and resold physical goods 15–30%.
What is the difference between margin and markup?
Margin divides profit by price; markup divides profit by cost. A 100% markup is a 50% margin.
How do I calculate the price for a target margin?
Price = cost ÷ (1 − target margin). For a $40 cost and 50% margin: $40 ÷ 0.5 = $80.