Profit margin calculator
Enter what you charge and what it costs you. See your profit, margin and markup instantly, and what to charge to hit the margin you want.
To keep 60% of each sale, charge $22.50.
Profit Pop tracks every sale and cost for you and shows your real profit, automatically.
How to calculate profit margin
Profit = price − cost. Margin = profit ÷ price. If you sell a candle for $24 and it costs you $9 to make and sell, your profit is $15 and your margin is 15 ÷ 24 = 62.5%. You keep about 62 cents of every dollar.
How to price for the margin you want
Divide your cost by (1 − the margin you want). To keep 60% of each sale on a $9 item: 9 ÷ 0.4 = $22.50. The calculator does this for you.
Why margin matters more than sales
Big sales numbers can hide thin margins. A $5,000 month at a 10% margin leaves $500. A $3,000 month at 50% leaves $1,500. Knowing your margin per product tells you which items are worth making more of.
Questions people ask
What's the difference between margin and markup?
Margin is profit divided by the price. Markup is profit divided by the cost. An item that costs $10 and sells for $20 has a 50% margin and a 100% markup.
What is a good profit margin for a small business?
It depends on what you sell. Handmade goods often aim for 50% or more per item before overhead, because time and fees add up. After all costs, a 10–20% net margin is generally considered healthy.
What costs should I include?
Everything that goes into one sale: materials, packaging, platform and payment fees, and shipping you pay for. Add your time too if you want to see your true profit.