Profit Margin Calculator

Free · No signup · Margin, markup & break-even ROAS with marketplace fees

Mode

Your Numbers

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Pro tip: Include packaging and inserts in "other costs". The little per-unit costs are the margin leaks nobody notices.

Platform & Payment Fees

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Results

Enter your product cost and sale price to see the numbers.

Reading the numbers

  • Gross margin = profit ÷ sale price. It is the share of each sale you keep after per-unit costs and fees.
  • Markup = profit ÷ total cost. The same product has a higher markup number than margin number, so never mix them up when pricing.
  • Break-even ROAS = sale price ÷ profit per unit. Any ad campaign returning less revenue per dollar than this loses money on every sale.

Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit as a percentage of the sale price; markup is profit as a percentage of your cost. A product bought for $50 and sold for $100 has a 50% margin but a 100% markup. Mixing the two up is one of the most common (and most expensive) pricing mistakes.

What is a good profit margin for ecommerce?

It varies by category, but a common rule of thumb is that a 10% net margin is average, 20% is good, and 30%+ is excellent. Gross margins need to be much higher, often 50–70%, to leave room for ad spend, shipping, fees, returns, and overhead.

What is break-even ROAS?

Break-even ROAS (return on ad spend) is the revenue you need per dollar of advertising just to not lose money. It equals sale price ÷ profit per unit before ad spend. If a product's break-even ROAS is 3.0x, an ad campaign returning less than $3 of revenue per $1 spent is losing money on every sale.

Which costs should I include?

For contribution margin per unit: product cost (COGS), inbound and outbound shipping, marketplace and payment processing fees, packaging, and any per-order costs. Fixed overheads like rent and salaries matter for net margin but are usually left out of per-unit contribution math.

How do marketplace fees affect my margin?

Fees are taken as a percentage of the sale price plus, on many platforms, a fixed amount per transaction, so they scale with your price, not your cost. Amazon referral fees run around 15% in most categories; that alone can consume half the margin of a typical product. Always calculate margin after fees. The presets above prefill typical rates, and you can edit them to match your exact plan.

Is this calculator free?

Yes, 100% free with no limits, no ads, and no signup. Everything runs in your browser; the numbers you type never leave your device. Built by Easy Ecommerce Group.