Profit Margin Calculator
See your true net profit, margin and markup per sale after product cost, shipping, platform fees, discounts and refunds.
Your net profit per sale
The detail behind it
Net margin
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Markup on cost
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Total cost / sale
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How the math works
Revenue = price after discount. Fees and refund loss are taken on that revenue.
Net profit = revenue minus cost, shipping, fees and refund loss. Margin = profit ÷ revenue; markup = profit ÷ (cost + shipping).
How profit margin works
Net profit is what's left after every variable cost on a sale: your product cost (COGS), shipping, the platform or payment-processing fee, the revenue you give up to discounts, and the share lost to refunds. This calculator subtracts all of them so you see the real number, not just price minus cost.
Margin and markup are easy to confuse. Margin is profit as a percentage of the selling price; markup is profit as a percentage of what the item cost you. A 50% markup is only a 33% margin.
Most healthy ecommerce products target a 20 to 40% net margin so there is room left for advertising, returns and price competition.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by your cost. The same dollar profit gives a smaller margin % than markup %.
What is a good profit margin?
It varies by category, but many ecommerce sellers aim for a 20 to 40% net margin after all fees so advertising and returns don't wipe out profit.
Does this include platform fees and refunds?
Yes. It accounts for a platform/processing fee percentage, an average discount, and a refund/return rate, all of which eat into real margin.
Is it free?
Yes, completely free with no signup. Everything runs in your browser.
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