GUIDE · 2026-07-23
How to use the Profit Margin and Markup Calculator
Revenue is not profit, and margin and markup use different bases. The tool first subtracts item, fulfillment, fixed and selling-price percentage fees to find net profit.
How it works
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Step-by-step
- 01Enter item cost, selling price and per-sale other cost in USD.
- 02Enter the current percentage and fixed fees from your agreement.
- 03Compare net profit, margin, markup and total cost.
Worked example
INPUT$30 item; $60 sale; $5 other cost; 6.5% + $0.30 fee
RESULT$39.20 total cost; $20.80 profit; 34.67% margin
Markup uses a cost base, so its percentage differs from margin.Limits and checks
- No platform preset is hardcoded; verify the current fee schedule.
- Tax, returns and advertising affect the result only when included in your inputs.
Useful examples
- Review an online product price
- Include payment and marketplace fees
- Compare profitability before and after a discount
Frequently asked questions
Are margin and markup the same?
No. Margin uses selling price as the base; markup uses cost, so the percentages differ for the same profit.
Are marketplace fees filled in automatically?
No. Platform rates change, so enter the percentage and fixed amount from your current agreement or fee schedule.
Will it show a loss?
Yes. When total cost exceeds selling price, profit and margin are negative.