Profit Margin Calculator

Both use the same profit, but divide by different numbers. Margin is profit ÷ selling price; markup is profit ÷ cost. An item that costs 80 and sells for 100 makes 20 profit: a 20% margin and a 25% markup. Margin can never reach 100%; markup can be any size.

Divide the cost by (1 − margin). For a 40% margin on an item that costs 30: 30 ÷ 0.6 = 50. Choose “Target margin” above and the calculator does this, including any discount you plan to give.

Gross margin only subtracts the product cost. Contribution also subtracts the costs of each sale — payment or marketplace fees, shipping and packaging — so it shows what each sale really adds toward rent, wages and profit.

Fixed monthly costs ÷ contribution per sale, rounded up to a whole sale. With 1,000 of fixed costs and 41.09 contribution per sale, you need 25 sales a month. If a sale contributes nothing or loses money after fees, there is no break-even point at that price.

No. Marketplace and payment fees change often and depend on your plan, country and category, so enter the percentage and fixed fee from your own fee schedule.

Yes. Import a CSV with columns such as name, cost, price and extra_costs, and every row is calculated with the same fee settings. Rows that can't be read are listed so you can fix them. Export the results as CSV, or print or save the page as a PDF.

Divide the markup by 1 plus the markup: margin = markup ÷ (1 + markup). A 50% markup gives 0.5 ÷ 1.5 = 33.33% margin. To go the other way, markup = margin ÷ (1 − margin). The table above lists common pairs.

No. Gross margin only subtracts what the product cost you. Net profit margin subtracts every expense — rent, wages, marketing, interest and tax — so it is always lower. This calculator shows gross margin and contribution per sale; use your accounts for net margin.

It cuts your profit by proportionally more than the discount, because the whole discount comes out of your profit. An item that costs 30 and sells for 50 has a 40% margin; with 10% off it sells for 45.00, profit falls from 20.00 to 15.00 and the margin drops to 33.33%. Enter a discount under “Fees, shipping & discount” to see the effect.

Enough to make up the lost profit on every sale. With a cost of 30 and a price of 50, a 10% price cut lowers profit per sale from 20.00 to 15.00, so you need 134 sales to earn what 100 earned before. “What if the price changes?” works this out for your own numbers.

It depends on the industry. Businesses that sell high volumes of goods, like grocery stores, often run on thin margins, while software and services can keep much more of each sale. Compare yourself with businesses like yours, and make sure your contribution covers your fixed costs at realistic sales volumes.

No. Everything is calculated in your browser. Imported files are read on your device and nothing is uploaded or saved.