Profit Margin Calculator
See what you really keep per sale, and the price you need to hit a target margin.
How it works
- Profit = selling price - cost - selling fees - other costs
- Margin = profit / selling price x 100
- Markup = profit / cost x 100
- Price for a target margin = (cost + other costs) / (1 - fee rate - target margin)
For discounts and percentage changes, use the percentage calculator. To add or remove VAT on its own, use the VAT calculator.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. Buy at 70 and sell at 100: the 30 profit is a 30% margin but a 42.9% markup. Adding 30% to your cost gives you a margin of only about 23%, not 30%.
How do I find the price for a target margin?
Price = (cost + other costs) / (1 - fee rate - target margin). For a 70 cost, no fees and a 30% margin, that is 70 / 0.70 = 100. This calculator does it for you below the results, including marketplace or payment fees.
How should I handle VAT or sales tax?
VAT collected on a sale is not your revenue, and VAT-registered businesses usually reclaim the VAT they pay on purchases. If your prices and costs include VAT, tick the box and enter the rate; the calculator strips it out before working out your margin. Leave it unticked if you are not VAT-registered or your prices are already net.
What should I put in the fee field?
The percentage taken when you sell: marketplace commission (Amazon, Etsy, eBay and so on), payment processing, or card fees. If you pay several, add them together. Fixed per-order costs such as shipping or packaging go in "Other costs".