Profit
Profit Margin Calculator
Turn a selling price and total cost into profit per unit, profit margin and markup, so you can see whether a price is actually worth listing at.
Profit per unit is the cash left from one sale. Margin tells you what share of the selling price that profit is, which is the number to compare across products at different prices. Markup tells you how much you added on top of cost, which is a different number — a 40% margin is not the same as a 40% markup, and mixing them up is how thin deals get approved.
Formula
Profit per unit = selling price − total cost. Profit margin = profit ÷ selling price × 100. Markup = profit ÷ total cost × 100. Total cost should include everything per unit: product, fees, shipping, packaging and any other per-unit cost.
How it works
Enter what the buyer pays per unit and everything that unit costs you, all in. Marketplace fees belong in the cost figure — run the platform fee calculator first if you have not already. The calculator shows profit, margin and markup together so you can check all three before you commit to a price.
Worked example
A $50 selling price with a $30 total cost: profit is $50.00 − $30.00 = $20.00. Margin is $20.00 ÷ $50.00 = 40.0%. Markup is $20.00 ÷ $30.00 = 66.7%. The same $20 profit is a 40% margin but a 66.7% markup — the gap between those two numbers is why this page shows both.
FAQs
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides profit by the cost. On a $50 price with $30 cost, margin is 40% and markup is 66.7%, even though the profit is $20 in both cases.
What should I include in total cost?
Everything tied to that one unit: product cost, marketplace and payment fees, shipping and packaging, and any per-unit prep or inserts. Leave monthly costs like subscriptions out and spread them separately.
What is a good profit margin for a reseller?
It depends on the category, return rate and how much time each sale takes. A margin that looks fine before returns, refunds and fees can disappear fast, so judge it after all per-unit costs, not before.
Can margin be negative?
Yes. If total cost is higher than the selling price, profit and margin go negative, which means every sale loses money before monthly costs. Raise the price or cut a cost before listing.
Why does margin matter more than profit dollars?
Because $20 profit on a $50 item and $20 profit on a $200 item are very different businesses. Margin lets you compare products at different prices and spot which one earns its shelf space.
Stand: October 2026. Pure arithmetic — no platform rate is used; enter your own figures.
Disclaimer: Results are estimates and general information only, not tax or financial advice. Fees change, so check the platform's current fee schedule before you price an item.
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