Profit margin calculator
Enter what an item costs you and what you sell it for, or the margin you want, and this profit margin calculator shows the profit, margin and markup.
Good to know
Margin and markup
Both compare profit with a price, but not the same price. Margin is profit as a share of the selling price. Markup is profit as a share of what the item costs you.
An item that costs $6 and sells for $10 makes $4: a 40% margin and a 66.7% markup. Margin stays under 100% unless the item costs nothing.
- Profit = price − cost
- Margin = profit ÷ price
- Markup = profit ÷ cost
- Price for a margin = cost ÷ (1 − margin)
Markup and the margin it gives
| Markup on cost | Margin on price |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.7% |
| 300% | 75% |
For marketplace sellers
Count every cost of a sale in “cost”: the item, packaging, shipping you pay and the marketplace’s fees. The Etsy, eBay and Amazon fee calculators work out the fees of an order for you.
Questions
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by the cost. When a sale makes a profit, its markup is higher than its margin: $4 profit on a $6 item sold for $10 is a 66.7% markup and a 40% margin.
Why is margin always under 100%?
Margin is profit as a share of the price, and profit is the price minus the cost. While the item costs something, profit is less than the price, so margin stays under 100%. Markup has no such limit.
Should I include marketplace fees in the cost?
Yes, for the margin you really keep. Add the fees, shipping and packaging of a sale to the item’s cost.
Are my numbers saved or sent anywhere?
No. The calculation runs in your browser; your numbers aren’t saved or sent.