Ecommerce profit margin calculator
See what you keep from each sale after product cost, shipping and payment fees. Free, no signup.
What is a profit margin calculator?
A profit margin calculator shows how much of each sale you keep after the costs of making that sale. Enter what the product costs you, what you sell it for, shipping per order and your payment fees. You get profit per sale, profit margin, markup and, if you add your monthly fixed costs, how many sales you need to break even.
Margin is profit as a share of the selling price. Markup is profit as a share of your costs. A product that costs $60 and sells for $100 has a 40% margin and a 67% markup on product cost. Mixing the two is a common way to price too low.
Payment fees look small per order, but they come out of every sale. On a $50 product, a 2.9% fee is $1.45, which can be a large slice of a thin margin.
The calculator runs in your browser. We don't store the numbers you enter, and you don't need an account.
How to use the profit margin calculator
Enter the product cost and selling price.
Use what you pay per unit, including inbound freight if you pay it, and the price before sales tax or VAT.
Add shipping and fees.
Shipping is what you pay per order. For fees, enter the percentage your payment provider and platform take from each sale. Leave it empty if you pay none.
Add monthly fixed costs (optional).
Apps, rent and salaries. The calculator shows how many sales cover them.
Click Calculate profit margin.
You get profit per sale, margin, markup and a breakdown of where the money goes.
How do you calculate profit margin?
Fees = selling price × fee %
Total cost = product cost + shipping + fees
Profit = selling price − total cost
Profit margin = profit ÷ selling price × 100
Markup = profit ÷ total cost × 100
Break-even sales = monthly fixed costs ÷ profit per sale (rounded up)| Input | Value |
|---|---|
| Product cost | $20.00 |
| Selling price | $50.00 |
| Shipping per order | $5.00 |
| Fees (2.9% of $50) | $1.45 |
| Total cost | $26.45 |
| Profit per sale | $23.55 |
| Profit margin | 47.1% |
| Markup on total cost | 89.0% |
| Break-even with $3,000 fixed costs | 128 sales a month |
The margin here is not your net profit margin: ads, returns and the fixed costs come out of that $23.55 too. Use it to see whether a price leaves room for them.
What is a good profit margin for an online store?
There is no reliable public benchmark for small online stores, so compare products with each other and with your own past months. Public data covers large companies only. Aswath Damodaran's January 2026 data for listed US retailers shows gross margins from 21.96% for automotive retail to 35.30% for specialty retail, and net margins from 1.32% for grocery to 7.84% for building supply.
The calculator's margin sits between those two: it takes off shipping and payment fees, which gross margin does not, but not ads or fixed costs, which net margin does. Its labels are rules of thumb, not a ranking against other stores:
| Margin | Label |
|---|---|
| Over 30% | High |
| 15% to 30% | Medium |
| 5% to 15% | Low |
| Under 5% | Very low |
Source: Damodaran, margins by sector (US), January 2026. To track gross margin across your whole store, see our guide to ecommerce KPIs.
When to check your profit margin
Pricing a new product
Try a few prices and see the margin at each before you list it.
Before a discount
Enter the sale price to see what is left. Our guide to promotional pricing strategies shows how many extra sales a discount needs to break even.
Setting an ad budget
Profit per sale is the most you can pay to win an order and still not lose money.
Comparing suppliers or carriers
Change product cost or shipping and see how much margin each option gives back.
Planning a short sale? Our flash sale guide covers which offer to run and how to protect your margin.
Sell more without cutting your margin
PopupSnap's popups and product badges help Salla and Zid stores show offers and highlight products. On another platform? Pick it and we'll show you what you can install today.
Frequently asked questions
Subtract all the costs of a sale from the selling price to get profit, then divide profit by the selling price and multiply by 100. A product that sells for $50 with $26.45 of product cost, shipping and fees leaves $23.55 of profit, which is a 47.1% margin. The calculator does this for you and shows markup and break-even too.
Margin is profit as a share of the selling price. Markup is profit as a share of cost. With a $60 cost and a $100 price, margin is 40% and markup on product cost is 67%. This calculator works out markup on your total cost, including shipping and fees, so its markup is lower than markup on product cost alone.
No reliable public benchmark exists for small stores. Damodaran's January 2026 data for listed US retailers shows gross margins from about 22% to 35% and net margins from about 1% to 8%. Compare your products with each other and with your own history, and make sure each price leaves room for ads and fixed costs.
Include everything you pay for each sale: the product, inbound freight, packaging, shipping to the customer and the percentage fees on each payment. Put costs that don't change with each sale, such as apps, rent and salaries, in monthly fixed costs. Ads and returns are not in the calculation, so leave room for them in your margin.
Yes, as one percentage of the selling price. Enter your provider's rate: Stripe's standard US rate and Shopify Payments on the Basic plan are both 2.9% plus 30 cents for online card payments. The calculator leaves out the fixed part, so add it to shipping per order if you want it counted.
No. Enter your prices without sales tax or VAT. Tax you collect from customers is passed on to the government, so it is not part of your revenue or your margin. If your listed prices include VAT, take the tax out of the selling price before you enter it.
Divide your monthly fixed costs by your profit per sale, then round up. With $3,000 of fixed costs and $23.55 of profit per sale, you need 128 sales a month. Enter your fixed costs in the calculator to see your own number. If a sale makes no profit, there is no break-even point, so the calculator hides it.
No. The calculation runs in your browser, so your costs and prices never leave your device. You don't need an account, and nothing is saved when you close the page. To keep a record, note the results for each product and check them again when your costs or prices change.