The calculation uses the entered values only, so the result depends on accurate cost and revenue assumptions.
CalcBeacon tool
Profit Margin Calculator
Work out product profit, profit margin and markup from cost and selling price. This version separates margin from markup clearly so pricing decisions are not based on the wrong percentage.
Use the profit margin calculator
Calculate profit, markup and margin from selling price and cost.
Result: waiting for input
Enter your values to see the result.
Quick answer
Profit Margin Calculator: The Profit Margin Calculator shows how much money is left from each sale after product cost. It is useful for ecommerce sellers, freelancers, makers and small businesses comparing prices before listing a product.
A concrete example makes it easier to check whether your result is realistic.
This is one of the easiest ways to misread the result.
How to interpret the result
A higher margin means more of each sale remains after cost, but it does not automatically mean the product is better. Sales volume, advertising, returns, platform fees and delivery costs can change the real result.
Methodology
The calculator subtracts cost from selling price to get profit, then divides that profit by selling price for margin and by cost for markup. It does not include tax, ad spend, payment fees or shipping unless you include them in the cost field.
Reviewed by CalcBeacon Editorial TeamCategory: Ecommerce / ProfitUpdated June 2026Transparent formula and example
Formula
Profit = selling price − cost. Profit margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100.
Example
If a product costs £20 and sells for £30, profit is £10. Margin is £10 ÷ £30 = 33.33%. Markup is £10 ÷ £20 = 50%.
What to check before relying on the number
Do not use markup when you mean margin. A 50% markup on cost is not the same as a 50% profit margin on the selling price.
Frequently asked questions
What is a good profit margin?
It depends on the product and business model. Digital products can have very high margins, while physical ecommerce products often need enough margin to cover fees, shipping, ads and returns.
Why is markup higher than margin?
Markup uses cost as the denominator, while margin uses selling price. Because selling price is usually larger than cost, markup often appears as the higher percentage.
How to use this calculator well
Use this page before changing a product price, comparing wholesale costs, or checking whether a discount still leaves enough margin. For ecommerce, put all direct product costs into the cost field if you want a more realistic number.
For best results, use numbers from the same source and the same period. Mixing monthly costs with single-order revenue, or gross revenue with net cost, can make the result look better than it really is.
Best useCompare pricing, campaign, product or cost scenarios before making a decision.
Risk checkDo not use markup when you mean margin. A 50% markup on cost is not the same as a 50% profit margin on the selling price.
Next useful stepOpen a related margin, ROAS, ROI or break-even calculator to test the same numbers from another angle.
Related tools
Use these calculators to continue the same decision path.