Calculate your true profit margin and markup after all costs — shipping, fees, and duties included. No sign-up required.
Enter your cost and selling price, then click Calculate to see your true profit margin.
Profit margin tells you the percentage of your selling price that is actual profit. The formula is: Margin % = ((Selling Price − Total Cost) ÷ Selling Price) × 100.
For example, if you sell a product for £25 and the total cost (including purchase price, shipping, and fees) is £18, your profit is £7 and your margin is 28%.
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price. They measure the same profit differently. A 50% markup is the same as a 33.3% margin. Retailers typically talk in margin; wholesalers and manufacturers often use markup.
Most businesses calculate margin using only the purchase price. But the real cost of selling a product includes shipping to your warehouse, platform or marketplace fees (Amazon takes 15%, eBay 12.8%), payment processing (2–3%), packaging, import duties, and returns. This calculator lets you add all of these to see your true margin.
It depends on your industry. Retail: 5–20%. Ecommerce: 10–30%. SaaS: 60–80%. Professional services: 20–50%. Food and beverage: 3–15%. The most important thing is knowing your margin per product, not just the average — because one loss-making product can drag down an otherwise profitable range.