Free pricing tool

Free Profit Margin Calculator

Calculate gross margin, net margin, markup, and ROI on any product — then work backwards to the selling price that hits the margin you actually want.

No signup requiredMargin and markup side by sideReverse-price to a target

The calculator opens with a typical private-label example. Replace every field with your own numbers — and use landed cost for the unit cost, not the supplier invoice price.

Net profit margin

56.7%

Gross margin

66.4%

Markup

197.5%

Net profit / unit

$14.17

ROI on cost

131.0%

Price for a 35% margin

$16.26

Your current price already clears that target.

Calculate your margin

Every figure is per unit unless labelled otherwise. Results update as you type.

Enter every figure in this currency.

Amount in US Dollar.

What the customer pays

Amount in US Dollar.

Product cost including freight, duty and prep

Amount in US Dollar.

What it costs to get one unit to the customer

Percentage from 0 to 100.

Card or marketplace fee, often around 2.9%

Amount in US Dollar.

Software, packaging, allocated overhead

Percentage from 0 to 100.

The margin you want — we return the price for it

Where the price goes

Unit cost (landed)$8.40
Outbound shipping$1.20
Payment processing$0.72
Other cost per unit$0.50
Total cost per unit$10.82
Net profit per unit$14.17

Monthly at 500 units

Revenue$12,495.00
Gross profit$8,295.00
Net profit$7,085.00
Break-even price$10.40

This margin is only as good as your unit cost.

SupplyAutomate tracks the real cost of every purchase order — supplier price, freight, duty, and prep — so the margin you model here matches the one you actually earn.

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The four numbers

Margin, markup, and the gap between them

Margin and markup describe the same profit against different denominators, and mixing them up is the most expensive arithmetic error in ecommerce pricing. A product costing $8.40 sold at $24.99 carries a 66.4% gross margin but a 197.5% markup. Price to the markup figure when you meant the margin and you will land well under the number you planned for.

Gross margin

Selling price minus the unit cost of the product, as a percentage of the price. Measures the product itself.

Net margin

The same calculation after shipping, payment fees, and overhead. Measures the business.

Markup

Profit over cost rather than over price. Always a bigger number than margin, and easy to confuse with it.

Target price

Work backwards: name the margin you want and get the price that delivers it after fees.

Selling on Amazon or a Shopify store?

Referral fees, fulfilment fees, and ad spend change the picture enough to deserve their own tools. Use the Amazon profit calculator for FBA, or the dropshipping profit calculator for a DTC store. To get the unit cost right in the first place, start with the landed cost calculator or the import duty calculator.

Profit Margin Calculator FAQ

Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A product that costs $25 and sells for $50 has a 50% margin and a 100% markup — the same $25 of profit described two different ways. Pricing to a "50% markup" when you meant a 50% margin leaves you well short.

The calculator is free. The margin is the hard part.

A margin built on a guessed cost is a guess.

Every number above depends on what your unit truly costs delivered. SupplyAutomate reads your invoices, files them against the right order, and keeps that cost current as freight and duty land — so the margin you priced against is the margin you get.

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