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Profit Margin Calculator

Work out net profit margin, markup, contribution per unit and break-even units after product costs, delivery, platform fees, payment fees, ads, overhead and refunds.

Business

Calculate profit margin

Advanced options+
Advanced margin tools should show net margin after fees, ads, overhead and refunds, not only selling price minus cost.

Net profit margin

0.00%

Gross sales$0.00
Refund allowance-$0.00
Net revenue$0.00
All-in cost$0.00
Net profit$0.00
Markup on direct cost0.00%
Contribution / unit$0.00
Break-even units0

Methodology

How this calculator works

The calculator estimates gross sales from unit price and quantity, subtracts a refund allowance, then removes product cost, shipping, percentage fees, fixed per-sale fees, ad spend and overhead. It calculates net margin, markup on direct cost, contribution per unit and break-even units.

Worked example

Reading the result

A product can look profitable when only unit cost is compared with sale price, but platform fees, card fees, ad spend, delivery and refunds can reduce the true margin. The advanced result shows each layer separately.

Common questions

Frequently asked questions

What is the difference between margin and markup?+

Margin compares profit with revenue. Markup compares profit with cost. They are not the same percentage.

Should I include ad spend and fees?+

Yes. Include platform, payment, delivery and advertising costs if you want a closer net margin estimate.

Can this be used for services?+

Yes. Treat labor, subcontractor cost or delivery expense as the unit cost and overhead inputs.

Important scope

This is a planning calculator, not an accounting ledger. It excludes inventory timing, payroll allocation, tax filings, chargebacks, multi-currency settlement, cost of capital and full profit-and-loss reporting. This calculator is for planning and education, not personal financial advice.

Read the guide: Profit margin explained →Explore more Business & Shopping calculators →