Check before acting
- Use the actual post-discount selling price.
- Include packaging, fulfillment and seller-paid shipping when they occur per order.
- Treat monthly payroll, rent and software separately unless you intentionally allocate them per sale.
Business
Profit Margin Calculator
See true profit per sale after variable fees and fixed costs, then reverse-calculate break-even and target-margin prices.
01
Enter your details
Results update instantly as you type.
DECISION GUIDE
How to use this result in a real decision.
Does the selling price leave enough profit after every cost that occurs with an order? Margin uses selling price as the denominator; markup uses cost. The calculator keeps them separate and reverse-calculates the price needed for a selected margin.
WORKED EXAMPLE
$60 product with $33.50 in fixed order costs
- Inputs
- $25 product cost, 12% percentage fees, $2.50 other order cost and $6 seller-paid shipping.
- Calculated result
- After $7.20 in percentage fees, profit is $19.30 per sale and net margin is about 32.2%. At 100 sales, that is $1,930 before overhead and tax.
- Decision meaning
- The product can absorb some discounting, but a discount should be tested against profit dollars—not only the new revenue or markup.
Not included automatically
- Income tax and sales tax that is collected for a tax authority
- Inventory carrying cost, spoilage and financing
- Fixed business overhead unless entered as an allocated order cost
How to use it
A better estimate in three steps.
- 01
Enter product cost, selling price, and per-order costs.
- 02
Add the percentage fee charged on the selling price.
- 03
Use break-even and target price to test pricing decisions.
Core formula
The math behind the result.
Net profit = selling price × (1 − fee rate) − product cost − fixed order costsQuestions
Useful before you decide.
What is the difference between margin and markup?
Margin divides profit by selling price. Markup divides profit by cost. They are related but not interchangeable.
What belongs in fixed order costs?
Include costs that occur per order, such as fulfillment, packaging, transaction charges, and seller-paid shipping.
Does the target price include the percentage fee?
Yes. The reverse calculation accounts for the fee rate and the target profit margin together.