How to use Profit Margin Calculator
- Choose Calculate profit or Find selling price. Enter all amounts in a single currency.
- Add product cost, seller-paid shipping, fixed per-order fees, percentage fees and discount.
- Read net revenue, contribution profit, margin and markup. For target pricing, check the achieved margin after cent rounding.
The calculation model
Net revenue R = listed price × (1 − discount). Base cost C = product cost + fixed fee + shipping. Percentage fees are charged on discounted revenue. Contribution profit = R × (1 − fee rate) − C. Margin = profit / R. Markup here = profit / C; percentage fees are excluded from that denominator. This definition is deliberately stated because calculators use different cost bases.
Reverse pricing and rounding
Required listed price = C / [(1 − discount) × (1 − fee rate − target margin)]. The target margin plus percentage fee must be below 100%. Required prices round upward to two decimal places, so the actual margin meets or exceeds the target. Other displayed amounts use decimal round-half-up. Intermediate arithmetic keeps 40 significant digits; displayed parts may differ by one cent from summing separately rounded lines.
Tax and cost assumptions
Enter tax-exclusive amounts in one currency. No VAT, sales tax, currency conversion, advertising or overhead is inferred. Allocate shipping and fixed costs per order or per unit consistently. If a payment provider charges fees on tax or shipping receipts, this simplified revenue base may not match its invoice. A zero cost base makes markup undefined; zero revenue is rejected. Values must be non-negative plain decimals, no commas or exponent notation.