What does the Free Profit Margin Calculator do?
Our Free Profit Margin Calculator helps you determine exactly how much profit you make on every product or service you sell.
Who is this for?
This tool is essential for e-commerce sellers, retailers, and service providers who want to ensure their pricing is sustainable.
How to use it
Enter your cost of goods sold (COGS) and your selling price, and the calculator will instantly show your gross profit margin percentage.
Common Use Cases
- Setting the right price for a new dropshipping product
- Evaluating the profitability of a service package
- Deciding if a discount or sale will still leave you with a profit
- Comparing margins across different product lines
Frequently Asked Questions
What is a good profit margin?
A good profit margin varies by industry, but generally 10% is average, 20% is good, and 5% is low.
What is the difference between markup and margin?
Margin is profit as a percentage of sales, while markup is profit as a percentage of cost.
Should I include overhead in the cost?
For gross profit margin, you only include direct costs (COGS). Net profit margin includes overhead.
How often should I check my profit margins?
You should check your margins regularly, especially when your supplier costs or operational expenses change.
How it works
Enter your cost and selling price to instantly see your gross profit, margin, and markup. We'll also provide AI-generated insights on your pricing strategy.
Tips for best results
- •Include all costs (materials, labor, shipping) in your cost price.
- •Industry average margins vary widely, but aim for at least 20% to be safe.