Profit Margin Calculator

    Enter what you charge and what you actually spend to deliver each unit. Include shipping, packaging, marketing per unit, and any fixed overhead for this batch. You get gross profit, net profit, margin, markup, and break-even pricing in one view so you can price with confidence.

    Best for

    Make the next pricing or planning decision with context

    Test how price and cost changes affect the margin on your business offer. It covers gross and net profit, margin, markup, and break-even price from your real product costs and selling price.

    Instant calculations · Editable fee assumptions · Export-ready results

    Inputs

    Values update results instantly. Adjust fee assumptions to match your seller dashboard.

    Your figures are saved in this browser on this device.

    Pricing

    USD

    Selling price per unit

    Per-unit costs

    USD

    Cost to make or source each unit

    USD

    Shipping cost per unit

    USD

    Packaging materials per unit

    USD

    Marketing or ad spend per unit

    USD

    Any other variable costs per unit

    Volume & overhead

    Number of units

    USD

    Fixed costs spread across this order (tools, subscriptions, etc.)

    Results

    Live estimates based on your inputs and editable fee assumptions.

    38.0% · Excellent

    Total revenue

    $49.99

    Selling price times quantity.

    Total costs

    $30.99

    All variable costs plus fixed batch costs.

    Gross profit

    $19.00

    Revenue minus variable costs only.

    Net profit

    $19.00

    Revenue minus all costs.

    Net profit margin

    Excellent

    38.0%

    Net profit as a percentage of revenue.

    Markup on cost

    150.0%

    Markup over product cost.

    Break-even price

    $30.99

    Lowest per-unit price to cover all costs.

    Total cost per unit

    $30.99

    All-in cost divided by units.

    What this means

    Solid result: 38.0% net margin with 19.00 net profit on 1 units. Break-even is 30.99 per unit, leaving room for promos or unexpected costs.

    Cost vs profit per unit

    Interactive breakdown of fees, costs, and remaining profit.

    62%38%

    Distribution

    • Total costs
      $30.99
      62.0%
    • Net profit
      $19.00
      38.0%

    Total $49.99 · 2 segments · interactive

    Line-item breakdown

    Dollar amounts, share of revenue, and visual proportion.

    Total revenue
    $49.99
    Variable cost per unit
    $30.99
    Total variable costs
    $30.99
    Fixed costs
    $0.00
    Total costs
    $30.99
    Gross profit
    $19.00
    Net profit
    $19.00
    Net margin
    38.0%
    Break-even price
    $30.99
    Cost per unit
    $30.99
    Markup on cost
    150.0%

    Assumptions used

    • • Variable cost per unit 30.99 × 1
    • • Fixed batch costs 0.00

    Profit intelligence

    Profit Health Score

    A quick read on margin strength, fee efficiency, shipping control, and pricing safety.

    96
    / 100
    ExcellentCalculated from live inputs — updates instantly
    Profit margin: 38.0% margin is strong. You can run promotions, absorb returns, or reinvest in growth.
    Fee burden: Only 0.0% of revenue goes to fees — very efficient.
    Shipping cost: Shipping costs look controlled or not applicable to this calculator.

    AI Business Insights

    New

    Personalized recommendations generated from your live calculation. No generic advice — every insight uses your actual numbers.

    Excellent margin — premium positioning is working

    With 38.0% margin and $19.00 profit per order, this product is priced well above costs. You have strong headroom to offer bundle discounts, absorb seasonal shipping surcharges, or invest in better packaging without eroding profit.

    Insights update instantly as you edit inputs. They are estimates based on your assumptions, not financial advice.

    Result ready

    Your next best moves

    Use your Profit Margin result to make the next decision. These General Business tools follow the same cost and pricing thread.

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    How it works

    Methodology & formulas

    This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.

    Calculation steps

    1. 1Revenue is calculated as selling price times quantity.
    2. 2Variable cost per unit combines product, shipping, packaging, marketing, and other per-unit costs.
    3. 3Total variable costs equal variable cost per unit times quantity.
    4. 4Total costs add fixed batch costs to total variable costs.
    5. 5Gross profit equals revenue minus total variable costs.
    6. 6Net profit equals revenue minus total costs.
    7. 7Net margin equals net profit divided by revenue.
    8. 8Break-even price equals total costs divided by quantity.
    9. 9Cost per unit equals total costs divided by quantity.

    Formulas

    • Revenue = salePrice × quantity
    • Variable cost per unit = productCost + shipping + packaging + marketing + other
    • Total variable costs = variable cost per unit × quantity
    • Total costs = total variable costs + fixedCosts
    • Gross profit = revenue − total variable costs
    • Net profit = revenue − total costs
    • Profit margin = netProfit ÷ revenue × 100
    • Markup % = (salePrice − productCost) ÷ productCost × 100
    • Break-even price = total costs ÷ quantity

    Important assumptions

    • All per-unit costs are multiplied by quantity to get total variable costs.
    • Fixed costs are added once per batch, not per unit, then divided for per-unit views.
    • Taxes and platform marketplace fees are not included unless you add them into per-unit costs.
    • Marketing cost per unit should be your blended ad spend divided by units expected from that spend for this scenario.
    • Break-even price assumes you spread fixed costs across the quantity entered.
    • This is a pre-tax profit view unless you include tax in costs.

    Sources & review

    Know what this estimate is built on

    This calculator is intentionally platform-agnostic, so it does not attach a platform fee URL.

    Calculator model reviewed: August 9, 2026

    Official references

    No single official fee page is attached here. The model keeps these inputs editable so you can use the terms that apply to your situation.

    Use the current terms

    This model uses editable planning assumptions. Confirm tax, payment, financing, or operating terms with the relevant provider, official authority, or adviser for your situation.

    Defaults are editable estimates. Match them to your current account, provider statement, official authority, lender, or adviser before making a pricing or investment decision.

    Calculator model reviewed: August 9, 2026. This date covers the page and calculator guidance, not a guarantee that every live platform rate or term was re-audited on that date.

    Worked example

    Handmade product batch

    You sell a $49.99 item, 10 units in this batch. Product cost $20, shipping $6.99, packaging $2, marketing $2 per unit, no other variable costs, and $50 fixed costs for tools and subscriptions across the batch.

    Revenue is $499.90. Total variable costs are $309.90 for the batch and total costs including fixed are $359.90. Gross profit is $190.00 and net profit is $140.00, which is a 28% net margin. Break-even price is $35.99 per unit, well below your $49.99 price, so you have healthy protection against small cost increases.

    FAQ

    Common questions

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