Tools / FINANCE
Profit Margin Calculator
Margin and markup are not the same number — confusing them is how products get underpriced. Enter your price and cost to see profit, margin, and markup at a glance.
ABOUT THIS TOOL
Pricing on gut feel is how healthy-looking sales quietly lose money. This free profit margin calculator takes your selling price and unit cost and returns the three numbers that actually matter: gross profit in dollars, gross margin as a percentage of the sale, and markup as a percentage of cost. Because margin and markup are so often mixed up — a 50% markup is only a 33% margin — seeing them side by side keeps your pricing honest and your products profitable.
How to use it
-
01
Enter your selling price
What the customer pays for one unit.
-
02
Enter your unit cost
What that unit costs you — product plus any per-order costs you want to include.
-
03
Read profit and margin
Gross profit, gross margin, and markup update instantly.
-
04
Test a price
Change the price to see the margin any figure would give you.
What people use it for
- Pricing a new product to hit a target margin
- Checking whether a discount still leaves you profitable
- Translating between markup and margin without the mental maths
- Sanity-checking supplier costs against your retail price
The E-Commerce
Growth Playbook
17 moves that turn a store into a revenue machine — the exact levers our team pulls for the brands we build and grow.
- Convert more of the traffic you already pay for
- Speed wins that lift revenue on every visit
- Retention flows that make the second sale cheaper
- Ad math so you scale in profit, not blind
Enjoy the playbook!
Your download should start automatically. If it doesn’t, grab it here.
Frequently Asked
Questions
Common questions about this free tool.
What is the difference between margin and markup?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same $10 profit on a $20 sale is a 100% markup but a 50% margin — this tool shows both so you never confuse them.
What is a healthy profit margin?
It depends heavily on your category, but many product businesses aim for a gross margin above 50% to leave room for marketing, overheads, and profit. Feed the result into the break-even ROAS calculator before you scale ads.
Does this include all my costs?
It measures gross margin from price and unit cost. For Shopify sellers, the Shopify Profit Calculator also factors plan fees, payment processing, and shipping for a truer per-order figure.
Current store performance