Profit margin calculator
Pick what you know. Enter cost and price to get your margin and markup, enter a cost and a target margin to get the price to charge, or enter a price and a margin to find the most you can pay for the product.
Get the Seller Profit Sheet, $14 one-time. Launch price: 50% off with FIRST10, first 10 buyers.
Gross margin = (price - cost) / price. Markup = (price - cost) / cost. Enter Etsy, Shopify, Amazon or eBay fees in dollars to see net margin; the fee calculators linked below give you that number. The Etsy example uses US rates as of October 2026 (6.5% transaction, 3% + $0.25 processing, $0.20 listing). Nothing leaves your browser.
That's one product. Which of yours lose money?
The Seller Profit Sheet does this math for every product at once. Paste your Etsy or Shopify sales export (or type in Amazon and eBay sales) and it shows net profit per product after fees, labels, discounts, returns and ad spend, with a red LOSING MONEY flag on anything underwater. Excel and Google Sheets, one-time $14, no subscription.
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Margin vs markup
Both compare the same profit to a different base. Margin divides profit by the selling price. Markup divides profit by the cost. A product that costs $12 and sells for $30 makes $18 of gross profit. That is a 60% margin ($18 / $30) and a 150% markup ($18 / $12).
Margin can never reach 100%, because that would mean the item cost nothing. Markup has no ceiling. If a supplier or a pricing guide gives you a percentage, check which one it means before you use it.
The formulas
Margin = (price - cost) / price | Price for a target margin = cost / (1 - margin) | Max cost = price x (1 - margin)
Example: your cost is $12 and you want a 40% margin. The price is $12 / 0.60 = $20.00. Turned around, if the market price for a similar item is $30 and you need 40%, the most you can pay to make or buy it is $30 x 0.60 = $18.00.
A common mistake is to add the margin to the cost. $12 plus 40% is $16.80, which is only a 28.6% margin.
Gross margin vs net margin for sellers
Gross margin only subtracts what the product costs you: materials, the wholesale price, packaging, inbound freight. Net margin also subtracts the costs of selling it. For an online seller the biggest of those is usually the marketplace or payment fee.
Take the $30 item that costs $12 again, sold on Etsy with free shipping. Etsy's US fees on $30 are $1.95 (6.5% transaction), $1.15 (3% + $0.25 processing) and $0.20 (listing), so $3.30 in total. Gross margin is 60%, but after fees you keep $14.70, a 49.0% net margin. Shipping labels you pay, ads and returns pull it lower still.
Use gross margin to compare products and suppliers. Use net margin to decide whether a product is worth selling at all. A per-product net margin needs your full sales export, because fees, discounts and ad costs differ from order to order.
Questions
How do I calculate a 40% profit margin?
Divide the cost by 0.60 (that is, 1 minus 0.40). A $12 cost needs a $20.00 price. Check: $8 profit / $20 = 40%.
Is a 50% margin the same as a 100% markup?
Yes. An item that costs $10 and sells for $20 has a 100% markup and a 50% margin. Both describe the same $10 of profit.
What is the difference between gross and net profit margin?
Gross margin subtracts only the product cost. Net margin also subtracts fees and other selling costs. A $30 Etsy sale with a $12 cost has a 60% gross margin but a 49.0% net margin after $3.30 of Etsy fees.
Why can't my margin be over 100%?
Margin is profit as a share of the price, and profit can't be larger than the price unless the cost is negative. If you see a number over 100%, it is a markup, not a margin.