Profit Margin Calculator

Margin and markup are not the same number — mixing them up quietly underprices everything you sell. Get both, plus the price that hits your target margin.

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Your results

Gross profit per unit

$0.00

Profit margin$0.00
Markup on cost$0.00
Price needed for target margin$0.00
Profit at that price$0.00

Fees last updated Oct 2026 — verify against the official fee schedule before pricing decisions.

How it works

Two ratios describe the same profit from different bases:

Margin = profit ÷ selling price
Markup = profit ÷ cost
Price for a target margin = cost ÷ (1 − target margin)

A 40% markup is only a 28.6% margin. Marketplaces take their fees out of the price, so margin — the share of the selling price you keep — is the number to plan with, and the reverse formula is how you price to protect it after fees.

Frequently asked questions

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides profit by the cost. For the same sale markup is always the bigger number. A $24 cost sold at $40 has $16 profit: 40% margin, 66.7% markup.

How do I price for a 40% margin?

Price = cost ÷ (1 − 0.40) = cost ÷ 0.60. A $24 cost needs a $40.00 price. Remember to use your full cost — product, shipping-in, packaging and marketplace fees — or the margin is fictional.

What is a good profit margin for online selling?

It depends on the channel, but many marketplace sellers target 20–40% net margin after fees and ads, because returns, fee increases and ad costs eat into anything thinner. Below 15% there is little room for a bad month.

Should fees be part of cost in this calculator?

For a true net margin, yes: add per-unit platform fees and payment fees to the cost field, or use the platform-specific calculators on this site, which break the fees out line by line.

Next steps

How we calculate & limitations

Worked example: Cost $24.00, price $40.00 → profit $16.00, margin 40.0%, markup 66.7%. For a 40% target margin the required price is exactly $40.00.

Assumptions & limitations: Gross margin on the figures you enter. Enter fully-loaded unit cost (including per-unit fees) for a net figure; fixed overheads are not allocated.

Fee data: Fees last updated Oct 2026 — verify against the official fee schedule before pricing decisions. All rates used on this page come from one central data file (assets/fees.js), where every rate carries its official source and a last-verified note.

Last updated: October 2026