How to calculate your profit margin
- Enter the selling price, what the item costs you, and any shipping or packaging per sale.
- Tap a platform to fill in typical fees, or type your own platform, card and fixed fees.
- Read your profit and margin, then set a target margin to see the price you should charge.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of cost. A $10 item that costs $6 has a 40% margin but a 67% markup.
Are fees charged on the price with tax?
Most marketplaces and card companies charge their percentage on the full amount the customer pays, so this calculator does the same.
Are the preset fees exact?
No. Fees depend on your plan, category and country and change often. Use the presets as a starting point and adjust them to your contract.
What does break-even price mean?
It is the lowest price at which you lose no money on a sale after fees and costs.