E-commerce
Profit Margin Calculator
Enter your sale price and cost to see your profit, margin, and markup instantly.
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Margin = profit ÷ sale price. Markup = profit ÷ cost. For your true take-home on a marketplace, also subtract platform fees with a fee calculator.
How to calculate profit margin
Your profit is your sale price minus your cost. Profit margin expresses that profit as a percentage of the sale price, while markup expresses it as a percentage of your cost — two views of the same sale that are easy to confuse.
If you sell on a marketplace, fees eat into this margin. See your real net profit after fees with our platform fee calculators or compare every platform.
Frequently asked questions
How do I calculate profit margin?+
Profit margin = (sale price − cost) ÷ sale price × 100. For example, a $100 sale with a $60 cost gives a $40 profit and a 40% margin.
What is the difference between margin and markup?+
Margin is profit as a percentage of the sale price; markup is profit as a percentage of the cost. The same $40 profit is a 40% margin on a $100 sale, but a 66.7% markup on a $60 cost.
What is a good profit margin?+
It varies by industry, but many online sellers aim for a 20–40% net margin after all costs. Remember that marketplace fees reduce your real margin — use a platform fee calculator to see your true take-home.