Profit Margin Calculator

Turn cost and selling price into margin, markup and profit per unit - or work backwards from a target margin.

What you pay, what you charge

Cost per unit

Selling price

Other costs per unit (optional)

Shipping you absorb, payment fees, packaging, pick-and-pack. Anything that scales with the order.

Currency

Result

Gross margin: --
Profit per unit: --
Markup on cost: --
Total unit cost: --

Work backwards from a target

Given the same costs, what would you have to charge to hit a margin?

Target gross margin

Required price: --
Change from current: --

Margin is not markup

They are different numbers and confusing them is the most common pricing mistake we see.

Margin is profit as a share of the price. Markup is profit as a share of the cost.

A product bought at $10 and sold at $20 has a 50% margin and a 100% markup. Set your prices with a markup target while thinking in margin and you will end up well short.

Rules of thumb

Margin	Reads as
Under 20%	Fragile
20–40%	Workable
40–60%	Healthy
Over 60%	Strong

These are gross margins, before ad spend and overhead. Whatever is left after those is what the business actually keeps.

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See how much extra volume a discount has to generate before it stops costing you money.

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