Boneyard Tools

Product Margin Calculator

See what you really keep on each sale. Enter your selling price, product cost and any shipping, fee and extra costs to get the net profit, net margin and markup after everything is deducted.

How to use the product margin calculator

  1. Enter the selling price and the product cost (COGS).
  2. Add any shipping you absorb, a marketplace or payment fee percent, and other per-unit costs.
  3. Read off the net profit, net margin and markup for each sale.

Examples

$100 product with a 10% marketplace fee

Price 100, cost 40, shipping 5, fee 10%, other 0
Fee $10, total cost $55, net profit $45, margin 45%, markup 112.5%

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percent of the selling price, while markup is profit as a percent of the product cost. A $40 item sold for $100 at a $45 profit has a 45 percent margin but a 112.5 percent markup. Margin can never exceed 100 percent; markup can.

What costs does this calculator include?

Net profit is the selling price minus the product cost, shipping you absorb, the marketplace or payment fee (a percent of the price) and any other per-unit costs you enter. The fee amount equals the price times the fee percent divided by 100.

Can the margin be negative?

Yes. If your combined costs are higher than the selling price the net profit and net margin turn negative, which means you lose money on each unit. That is a useful signal to raise the price or cut a cost.

What is a good profit margin for ecommerce?

It varies by niche, but many ecommerce sellers aim for a net margin of roughly 10 to 30 percent after all costs. Lower-priced or fee-heavy marketplaces tend to sit at the lower end, so always check your own numbers.

Is my data private?

Yes. The calculation runs entirely in your browser. Nothing you type is sent to a server, stored or shared, so you can use it for sensitive pricing without worry.

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