Profit Margin Calculator

The profit margin calculator works in two directions. Enter your cost and a target margin and it finds the selling price you need; enter a selling price and a cost and it gives unit profit, profit margin and markup. You can optionally add commission, shipping, packaging, an advertising share per order, a returns share and a tax rate, and the tool takes them into account to give net unit profit and net margin.

Margin is profit as a share of the selling price, while markup is profit as a share of cost. For the same profit the markup is always larger than the margin, so mixing the two up is a common reason prices end up wrong. The results show net unit profit, net margin, break-even selling price and break-even ROAS. A horizontal bar shows how much of the selling price goes to cost and to each expense. The formulas are written under the results. The tool gives no good margin threshold, because that depends on your business.

Values such as tax rate and commission rate are not preset, so you must enter the current rates yourself. The prices include tax option is there to separate the rate you enter from the price. The tool does not know about costs you leave out and calculates only the items you type. This is a rough estimate; ask a qualified accountant about tax and accounting decisions. Your figures stay in your browser and are never sent or stored.