Estimate gross profit, net profit, profit margin and markup using your revenue, product cost, marketplace fees, shipping, packaging, advertising and other selling expenses.
Your estimated margin
These results are estimates for planning purposes. Use them to understand how much profit is left after selling costs.
Cost breakdown
| Product cost | $0.00 |
|---|---|
| Marketplace fees | $0.00 |
| Shipping cost | $0.00 |
| Packaging cost | $0.00 |
| Ad cost | $0.00 |
| Other expenses | $0.00 |
Assumptions used
Generic margin calculator- Gross profit uses revenue minus product cost only.
- Net profit subtracts product cost, marketplace fees, shipping, packaging, ads and other expenses.
- Markup on total costs compares net profit with total costs.
- This calculator is for margin estimates only and is not financial or tax advice.
How this profit margin calculator works
This profit margin calculator estimates your gross profit, net profit, gross margin, net margin and markup based on your revenue and selling costs.
Enter your total revenue, product cost, marketplace fees, shipping, packaging, advertising and other expenses. The calculator then shows how much profit is left after your costs.
What it calculates
- Total revenue
- Total costs
- Gross profit
- Net profit
- Gross margin
- Net margin
- Markup on total costs
Costs included
- Product cost
- Marketplace fees
- Shipping cost
- Packaging cost
- Ad cost
- Other expenses
Example profit margin calculation
Suppose your revenue is $50.00. Your product cost is $15.00, marketplace fees are $5.00, shipping costs $4.50, packaging costs $1.00, ads cost $3.00 and other expenses are $2.00.
The calculator subtracts those costs from your revenue to estimate your net profit and net margin.
This helps you understand whether a product is profitable enough after all selling costs, not just product cost.
Gross margin vs net margin
Gross margin
Gross margin compares gross profit with revenue. In this calculator, gross profit uses revenue minus product cost only.
Net margin
Net margin compares net profit with revenue after marketplace fees, shipping, packaging, ads and other expenses are included.
Common margin mistakes for online sellers
Costs sellers often miss
- Marketplace fees
- Payment processing fees
- Ad cost per order
- Packaging materials
- Shipping undercharges
- Refunds and discounts
Ways to improve margin
- Increase the selling price
- Reduce product or packaging costs
- Review shipping strategy
- Reduce ad dependency
- Bundle low-ticket products
- Compare platforms before listing
Related calculators
Use these related tools to price products and estimate platform-specific selling fees.
FAQ
What is a profit margin calculator?
A profit margin calculator estimates how much profit remains after costs and expenses are subtracted from revenue.
What is the difference between gross margin and net margin?
Gross margin usually looks at revenue minus product cost. Net margin includes more selling costs, such as fees, shipping, packaging, ads and other expenses.
What is a good profit margin for online sellers?
There is no single good margin for every seller. It depends on the product, platform, shipping costs, advertising costs and business model.
Does this calculator include taxes or VAT?
No. Taxes, VAT, income tax, sales tax and other tax rules are not included. This calculator is for margin estimates only and is not tax or financial advice.
Why is net margin lower than gross margin?
Net margin is usually lower because it includes more costs, such as marketplace fees, shipping, packaging, advertising and other expenses.
Can I use this for Etsy, eBay, Shopify or Amazon?
Yes, as a general margin estimate. For platform-specific fees, use a dedicated calculator such as the Etsy Fee Calculator or future eBay, Shopify and Amazon tools.