Profit Margin Calculator – Free Online Tool
Calculate your profit and profit margin in seconds! Our free Profit Margin Calculator helps business owners, entrepreneurs, and ecommerce sellers quickly find out how much profit they make on every sale. Enter your cost price, selling price, and any additional fees to instantly see your profit, margin (%), and markup (%).
How to Use the Profit Margin Calculator
- Enter your Cost Price (the total cost to produce or buy your product).
- Enter your Selling Price (what you sell it for).
- Optionally, add Fees like shipping, packaging, or platform charges.
- Click Calculate to see your:
- Profit Amount ($)
- Profit Margin (%)
- Markup (%)
💡 Example: If your cost is $40 and you sell for $80, your profit is $40, and your profit margin is 50%.
Why Use a Profit Margin Calculator?
Running a business means knowing exactly how much profit you make. This online profit calculator helps you:
- Understand your real profitability per product
- Set competitive prices while maintaining healthy profit margins
- Identify products with low margins that need optimization
- Test "what-if" scenarios (e.g., "What if I increase price by 10%?")
Whether you're a Shopify seller, Amazon merchant, or freelancer, this calculator gives you fast, accurate answers.
What Is Profit Margin?
Profit Margin is the percentage of your selling price that becomes profit after deducting costs. It shows how efficiently your business generates profit from sales.
Formula:
Profit Margin (%) = (Profit ÷ Selling Price) × 100
Profit = Selling Price − Cost Price − Fees
Typical average margins by industry:
- Retail & Ecommerce: 20–40%
- Manufacturing: 10–25%
- Services & Agencies: 30–60%
Use this profit percentage calculator to see how your business compares.
Try the Calculator
👉 Enter your numbers in the calculator on the right and find your profit instantly!
How to Improve Your Profit Margins
Here are a few strategies to increase your business profitability:
- Negotiate better supplier prices to lower costs
- Bundle products for higher perceived value
- Increase selling price slightly to raise margins
- Reduce unnecessary expenses like shipping or ads
- Track your metrics regularly using this calculator
Frequently Asked Questions (FAQ)
1. What is a good profit margin for small businesses?
A profit margin between 20–40% is generally considered healthy, depending on your industry.
2. What's the difference between profit margin and markup?
Profit margin measures profit as a percentage of selling price, while markup measures profit as a percentage of cost.
3. Can I use this calculator for ecommerce or dropshipping?
Absolutely. This tool works great for Shopify, Etsy, Amazon, or any online store.
Final Tips
Use this business profit calculator regularly to test your pricing strategy and stay competitive. Smart pricing = stronger margins = sustainable growth 🚀