Pricing & Profit

Profit Margin Calculator

Find your profit margin from cost and price — or the price you need to charge to hit a target margin.

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Your numbers

$

Product + shipping + fees per unit

$

Results

Profit margin

60%

$18.00 profit per unit

Selling price
$30.00
Cost
$12.00
Profit per unit
$18.00
Markup
150%

Download your results

Branded KleverKlimb report with your inputs and results.

How it works

The formula

Exactly what this calculator does with your numbers — no hidden assumptions.

01functions

Profit margin

Margin = (price − cost) ÷ price × 100. It tells you what share of each sale you keep.

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Price for a target margin

Price = cost ÷ (1 − target margin). A $12 cost at a 40% margin needs a $20 price.

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Margin vs markup

Markup divides profit by cost; margin divides profit by price. A 50% markup is only a 33.3% margin.

Profit Margin vs Markup: The Difference That Costs Sellers Money

5-minute guide · Margin and markup explained with examples, a conversion table, and how to price products so you hit the margin you actually need.

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FAQ

Questions, answered

Q1What is a good profit margin for e-commerce?
It varies by category, but many online sellers aim for a 20–40% net margin after all costs. Low-price items usually need higher margins to cover fixed fees and shipping.
Q2What should I include in cost?
Everything it takes to sell one unit: product cost, inbound shipping, packaging, marketplace and payment fees, outbound shipping you pay, and advertising per sale if you want a net margin.
Q3Why is my margin lower than my markup?
Because margin is based on the selling price (a bigger number) and markup on the cost. The same profit is always a smaller percentage of price than of cost.
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