Business Tool
Profit Margin Calculator
Turn a selling price and cost into a clear view of revenue, profit and margin.
Enter your numbers
Your result
Calculation basis
Unit economics, made visible
Revenue = selling price × units. Total variable cost = product cost + fees/shipping per unit. Profit = revenue − total variable cost. Margin = profit ÷ revenue × 100.
Calculation flow
Source & scope
Standard business arithmetic; no external regulatory source is required for the core calculation.
Assumptions & limits
- Costs entered are treated as per-unit variable costs.
- Fixed overhead is not included unless represented in the chosen inputs.
- Margin and markup are different measures.
Why this tool is different
The result connects price, cost, volume and margin so the number can support a pricing decision.
How it works
Know whether the price is actually profitable
Profit margin becomes more useful when it includes the costs that disappear inside a spreadsheet: product cost, platform fees, shipping or other per-unit expenses.
Why this tool exists
The same unit economics can later feed pricing, break-even and automation decisions. That makes this tool a strong entry point for a broader business-tool cluster.
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Frequently asked questions
What is profit margin?
Profit margin is profit divided by revenue, expressed as a percentage.
What is the difference between margin and markup?
Margin uses profit divided by selling price. Markup uses profit divided by cost.
Can I include shipping and fees?
Yes. Add per-unit shipping, platform fees or other variable costs in the fees field.