Profit Margin Calculator

Same profit, different denominator. Margin divides profit by the selling price; markup divides it by the cost. A product bought for $60 and sold for $100 has a 40% margin but a 66.67% markup. Mixing them up is the most common pricing error in retail: applying a "40% markup" when you meant a 40% margin underprices the product. This calculator always shows both, computed from the same numbers.

Because fees do not scale the same way. A fixed payment fee like $0.30 is charged per transaction, so ten units in one order pay it once, while ten separate one-unit orders pay it ten times: a $2.70 difference on identical volume. Calculators with a single "quantity" field silently pick one interpretation and get the other case wrong. Here the model is explicit and the fixed fee is labeled per order, charged once per order.

Because net profit is a precise accounting term meaning profit after ALL costs: returns, packaging, tax, wages, rent, overhead. This calculator deducts your product cost and the selling costs you actually entered, and nothing else, so it names the result honestly: contribution profit after entered costs. A tool that calls two fee fields "net profit" is telling you a comfortable lie.

You choose the basis. Gross margin by definition ignores fees, so cost / (1 - margin) applies. Contribution margin accounts for them: the solver uses P = (C + F) / (1 - r - m), where r is your percentage fee rate and F your fixed per-order costs, and it verifies against the same engine that displays results, so the solved price actually hits the target. Impossible combinations, where fees plus target reach 100% of revenue, are rejected with an explanation instead of a wrong number.

Not universally, which is why this calculator refuses to grade your margin. A 25% gross margin is strong in grocery and fatal in software; contribution margin after ad spend has a different healthy range than gross margin entirely. The status here is factual: profit, break-even or loss, based on your numbers. What margin your business needs depends on your fixed costs and volume, which the break-even outputs help you reason about.

No. Every calculation runs locally in your tab: costs, prices and fees are never uploaded, stored or logged. The Copy summary button produces a text version, including all assumptions and the ISO currency code, only when you click it, and it goes to your clipboard, not to us.