Profit Margin Calculator
Calculate your e-commerce profit margins instantly. Include platform fees, shipping, and advertising costs.
Showing example calculation. Enter your own values to get started.
Enter your costs and selling price to calculate profit
How to Calculate Profit Margin
Follow these simple steps to understand your e-commerce profitability
Enter Your Costs
Input your product cost, shipping, and advertising expenses
Set Selling Price
Enter your selling price or let us suggest one based on target margin
View Results
See your profit margin, markup, and ROI instantly
Optimize Pricing
Adjust your pricing strategy based on industry benchmarks
Understanding the Formulas
Profit Margin Formula
Margin = (Price - Cost) / Price × 100%
Example: $25 price - $15 cost = 40% margin
Markup Formula
Markup = (Price - Cost) / Cost × 100%
Example: $25 price - $15 cost = 66.7% markup
E-commerce Platform Fee Comparison
Compare fees across major platforms to maximize your profits
| Platform | Referral Fee | Transaction Fee | Fulfillment | Global Reach | Best For |
|---|---|---|---|---|---|
A Amazon FBAView Calculator | 8-45% | $0.99/item | High-volume sellers seeking massive reach | ||
S ShopifyView Calculator | 0% | 2.9% + $0.30 | Brand builders wanting full control | ||
e eBayView Calculator | 3-15% | $0.30/order | Unique items and auction-style selling | ||
D DropshippingView Calculator | 0% | 2.9% + $0.30 | Low-investment business starters | ||
E EtsyView Calculator | 6.5% | 3% + $0.25 | Handmade, vintage, and craft sellers |
High-volume sellers seeking massive reach
Brand builders wanting full control
Unique items and auction-style selling
Low-investment business starters
Handmade, vintage, and craft sellers
* Fees vary by category and location. Always check current rates.
Profit Margin Benchmarks by Industry
Compare your margins to industry standards
Electronics
Fashion & Apparel
Beauty & Personal Care
Home & Garden
Dropshipping
Private Label
Handmade & Crafts
Food & Grocery
Pro Tip
Most successful e-commerce businesses aim for 30-50% profit margins. If your margins are below industry average, consider optimizing your supply chain or adjusting pricing.
Calculator Features
Everything you need to optimize your e-commerce pricing
Multi-Platform Support
Pre-configured fees for Amazon, Shopify, eBay, and more
Multi-Currency
Calculate in USD, EUR, GBP, CNY, and JPY
Instant Results
Real-time calculations as you type
Privacy First
All calculations done in your browser
Industry Benchmarks
Compare your margins to industry standards
Mobile Friendly
Calculate on any device, anywhere
Who Uses This Calculator
Perfect for e-commerce sellers at every stage
Amazon FBA Sellers
Calculate FBA fees, referral fees, and storage costs to price products profitably
Example
A $25 product with $8 cost and $4.50 FBA fees = 50% margin
Private Label Brands
Factor in manufacturing, shipping from China, and marketing costs
Example
Calculate break-even point before launching a new product
Shopify Store Owners
Include payment processing fees and marketing spend in your pricing
Example
Compare Shopify Payments vs PayPal fees
Dropshippers
Account for supplier costs, shipping times, and advertising spend
Example
Ensure profitable margins with AliExpress suppliers
Frequently Asked Questions
Answers to common profit margin questions
Profit margin is calculated by subtracting total costs from selling price, then dividing by selling price and multiplying by 100. Formula: Profit Margin = (Selling Price - Total Cost) / Selling Price × 100% Example: If you sell a product for $25 and it costs $15 total: Profit Margin = ($25 - $15) / $25 × 100% = 40%
Related Tools
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Ready to Optimize Your Pricing?
Use our free calculator to find your perfect profit margins and pricing strategy