Profit Margin Calculator
Calculate profit, margin, markup, selling price, cost price and ROI
100% free. Runs entirely in your browser - your files and data never leave your device and nothing is uploaded to any server.
Enter what you pay and what you charge to see your profit, margin and markup.
Check your numbers
Enter a cost price greater than zero.
About this tool
This calculator works out profit, profit margin, markup, selling price, cost price and ROI from whichever figures you have - and can factor in shipping, packaging, transaction fees, tax, discounts, marketing spend and quantity to show what you actually take home on a sale.
How to use this tool
- Choose calculation modeStart from cost, selling price, target margin, or ROI depending on known inputs.
- Enter base and additional costsInclude fees, shipping, discounts, and overhead for realistic profitability.
- Calculate margin/markup/ROIGenerate complete profitability metrics in one view.
- Adjust pricing scenarioIterate values to reach sustainable margin targets before launch.
Key features
- Prevents common confusion between margin and markup.
- Includes hidden costs many basic calculators ignore.
- Supports smarter pricing and profitability decisions.
- Useful for ecommerce, retail, and service businesses.
Common uses
- Setting product prices before listing launch.
- Evaluating ad-spend impact on net profitability.
- Comparing vendor cost changes against margin goals.
- Preparing financial projections for new SKUs.
Tips for better results
- Track net margin after all transaction/platform costs.
- Use margin targets by category, not one blanket percentage.
- Test discount scenarios before running promotions.
- Monitor contribution margin alongside overall profit.
Mistakes to avoid
- Adding desired margin on top of cost (that computes markup).
- Ignoring payment gateway and marketplace fee impacts.
- Running promotions without recalculating post-discount margin.
- Using revenue growth as proxy for profitability health.
Frequently asked questions
This is the most common pricing mistake, and it costs businesses real money. Margin is profit as a share of the SELLING price; markup is profit as a share of the COST price. Buy at 100 and sell at 150 and you have a 50% markup but only a 33.3% margin. They are never the same number unless both are zero, which is why this tool always shows both together.
Use the Selling Price mode: enter your cost and the margin you want, and it gives you the price to charge. Note that you cannot divide your cost by (1 - margin) in your head reliably, and adding your target margin as a percentage on top of cost gives you a markup, not a margin - which is exactly how businesses end up under-pricing.
Because margin is measured against the selling price. To keep 100% of the selling price as profit your cost would have to be zero, and above 100% is arithmetically undefined. Markup has no such ceiling - you can mark up by 500% quite happily. If you want a very high return, set it as a markup rather than a margin.
Shipping, packaging and other costs are added per unit; transaction fees and tax are taken as a percentage of what the customer actually pays; discount reduces the selling price before anything else is worked out; and marketing is treated as a single cost across the whole batch rather than per unit. Together they turn a headline margin into the figure you really keep.
ROI is your profit divided by what you spent, as a percentage. Invest 1,000 and get 1,250 back and your ROI is 25%. In the main pricing modes the ROI figure shown is total profit against total costs, including any marketing spend you entered.
Break-even means revenue and costs are equal, so you make neither a profit nor a loss. The result turns green for profit, red for a loss and amber at break-even, so you can see at a glance whether a price actually works before committing to it.
No. Every calculation runs in your browser and nothing is uploaded. Your last entries are saved locally on your own device so a refresh does not lose them, and clicking Reset clears them.
Yes. Profit Margin is free for normal use with no account required, and ToolBox does not add a watermark to your result.
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