Profit margin calculator
Price your products
for real profit
See your profit margin and profit per item in seconds. Enter your costs and selling price to find out how much you really earn.
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Markup
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Price your products
What is profit margin?
Formula = (Sell price − Cost per item) ÷ Sell price × 100
Profit margin is the percentage of each sale you keep after covering your costs. It tells you what you're actually earning so you can set smarter prices and build a business that stays profitable.
Margin vs. markup
Markup is how much you add on top of your cost to set a price. Margin is the percentage of that price you actually keep as profit.
Knowing both helps you price with intention and protect your profit consistently.
Know your profit. Keep more of it.
You've done the math. Now set up a store that protects your margins from day one.
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Fast, flexible, and converts 15% better than other platforms on average. More conversions means more of your margin turns into real revenue.
All in one platform
Manage shipping, inventory, and marketing in one place. No switching between tools or surprise costs eating into your margins.
Lower transaction fees
Shopify charges lower fees than fifty other ecommerce platforms, even when you use third-party payments. Lower fees mean you keep more of every sale.
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Free tools to help you sell profitably
Thinking about margins? These tools pair perfectly with this calculator.
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Frequently asked questions
What's a good profit margin?
It depends on your industry, but most retail businesses aim for 50% or higher. Use this calculator to test different price points and find what works for your products.
What's the difference between margin and markup?
Margin is your profit as a percentage of the selling price. Markup is how much you increase your item cost as a percentage.
Does this include shipping or CAC?
No. Advanced mode lets you include shipping and customer acquisition costs (CAC). Add any extra expenses for a complete picture.
Why does my margin change when I have a discount?
Discounts lower your selling price, shrinking your margin if costs stay the same. Enter new prices to track changes.
How do I use my margin results?
Use profit margin to set prices, measure performance, and compare products as you grow.
What costs should I include when calculating profit margin?
Include every cost for making, storing, shipping, and selling your product. Advanced mode lets you add acquisition and shipping costs.
Ready to start selling?
3 days free
Extend your trial for $1
Earn up to $13,000 in credits
You agree to receive Shopify marketing emails.