Profit Margin Percentage Calculator
Margin percentage from any cost and price.
Profit margin
40.0%
$12.00 per unit
How the Profit Margin Percentage Calculator works
The simplest version of the question: given what it cost and what it sold for, what percentage did you keep? This gives the margin, the markup equivalent, and the price you would need for whatever margin you are actually aiming at.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the profit margin formula?
(Selling price − cost) ÷ selling price × 100. Dividing by the selling price is what makes it a margin; dividing by cost would give markup, a larger and different number.
Is a 20% profit margin good?
For net margin in ecommerce, 20% is strong. For gross margin it is thin, because everything else still has to come out of it. The same percentage means very different things depending on which margin it describes.
How do I increase profit margin?
Raise price, reduce unit cost, or shift the mix toward higher-margin products. Price is usually the fastest lever and the most feared — a 5% price rise typically adds far more profit than a 5% cost reduction, because it flows straight through.
Why does my margin fall as I grow?
Commonly because acquisition costs rise as you exhaust the cheapest customers, and because discounting creeps in to sustain volume. Both compress margin while revenue keeps climbing, which is why growth can quietly reduce profit.