Profit Margin Calculator
Profit Margin Calculator is a free business tool that runs directly in your browser with no account required.
About this tool
Built for sellers on fee-charging platforms, this calculator computes net profit after a percentage platform fee, a fixed per-order fee, and any discount you offer. It reports both margin (profit over net revenue) and markup (profit over cost), back-solves your break-even price and the price needed to hit a target margin, and compares discount scenarios in a table you can download as CSV.
How to use
- Enter your unit Cost and current Selling price.
- Set the Platform fee % and Fixed fee your marketplace or processor charges (for example 2.9% + $0.30).
- Add any Discount % you offer and your Target margin %.
- Review net profit, margin, markup, break-even price, and target price, then use Download margin scenarios CSV to compare discount levels.
Frequently asked questions
What is the difference between margin and markup?
Margin is net profit divided by net revenue; markup is net profit divided by cost. A $40 cost sold for $75 net is roughly a 47% margin but an 87% markup — confusing the two is a common pricing mistake.
How are fees and discounts applied?
The discount reduces your gross price first, then the percentage fee is taken from the discounted revenue and the fixed fee is subtracted on top. Net profit is what remains after also subtracting your cost.
How is the target price calculated?
It solves for the list price where, after your discount, percentage fee, and fixed fee, the remaining profit equals your target margin — so the price already compensates for every deduction.
What do the scenario rows show?
Your current pricing next to versions with 5 and 10 extra points of discount, plus a row priced at your target margin, each showing net revenue, net profit, margin, and markup.
What limits apply?
Selling price must be positive, cost cannot be negative, the discount caps at 99%, and the target margin caps at 95% (a 100% margin is mathematically unreachable).
Is my pricing data shared anywhere?
No — all calculations happen in your browser, so your costs and margins stay on your device. Results are estimates for pricing decisions, not financial advice.