Profit Margin Calculator

Calculate your net profit, profit margin, and markup to ensure every sale is a profitable one.

Enter Your Product Costs

How to Use This Tool

  1. Sale Price: Enter the final price your customer pays for the product.
  2. Cost of Goods: Input the amount you pay your supplier for a single unit.
  3. Shipping & Other Costs: Add all other variable costs like shipping and payment processor fees (~2.9%).
  4. Calculate: Click the button to see your net profit, margin, and markup.

Strategic Insights

Understanding Your Numbers for a Healthy Business

Profit margin isn't just a number; it's the lifeblood of your business. A common mistake is focusing on revenue while ignoring margins. A high-revenue store with a 5% margin is less profitable and more work than a lower-revenue store with a 40% margin.

For dropshipping, aiming for a net profit margin of 15-25% is a healthy target. Less than 10% is risky, as unexpected costs like refunds or increased ad spend can wipe out your profits entirely. Use this tool for every potential product to build a sustainable online store.