Profit Margin Calculator

Currency

Selling price (per unit)

Product cost (per unit)

Marketplace / payment fee (%)

Shipping & packaging (per order)

Ad spend (per unit sold)

Your Price Is Not Your Profit

You sell something for $50 that cost you $22 and feel great — until the marketplace takes its cut, the courier takes theirs, and the ads that brought the customer quietly take another slice. Suddenly your "great" margin is pocket change. This calculator adds up every cost that touches a sale — product, fees, shipping, ads — so you see the number that actually lands in your pocket: net profit per unit.

Reading Your Numbers

Net profit / net margin — the only numbers that truly matter. This is what each sale earns you after everything.
Gross profit / gross margin — profit before the "extras" (fees, shipping, ads). Useful for comparing products against each other.
Markup on cost — how much you added on top of what you paid. Handy for setting prices, misleading for judging health.
True cost per unit — the all-in cost of making one sale happen. If this number surprises you, the calculator just paid for itself.

Three Levers When the Margin Is Thin

Raise the price. Even 5% can double a thin margin — and most customers won't blink.
Cut the true cost. Renegotiate with suppliers, but also audit ad spend and packaging: the unglamorous costs add up.
Kill silent fees. A cheaper payment method or a lower-fee sales channel goes straight to your bottom line.

Frequently Asked Questions

What's the difference between profit margin and markup?

Margin divides profit by the selling price; markup divides it by the cost. A $30 profit on a $50 sale is a 60% markup but only a 40% margin. Mixing them up is the classic way sellers accidentally underprice.

What is a good profit margin for an online seller?

After every cost — product, fees, shipping, ads — 10% is thin, 20–30% is healthy for most product businesses, and 40%+ is premium territory. Digital products can go far higher since there is no per-unit cost.

Should I really count marketplace fees and ad spend as costs?

Yes — they come out of every single sale, so leaving them out means fooling yourself. A product with a 'great' 50% gross margin can easily drop under 15% net once fees and ads are counted.

Try More Free Tools

Explore our full collection of free online tools — from image compressors to business calculators, all free and no signup required.