Business Calculators

Profit Margin Calculator

Calculate profit, margin, markup, and break-even price for ecommerce products, services, and small business pricing. Copy the Excel formulas into your own sheet.

Profit

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Margin %

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Markup %

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Break-even

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Excel formulas

How to use profit margin in pricing sheets

Profit margin is most useful when all real costs are included. For ecommerce sellers, the cost price alone is rarely enough. Add shipping, platform fees, tax, packaging, and other per-order expenses before calculating profit. Use margin to understand how much of your selling price remains as profit, and markup to understand how much you add above cost.

Profit margin FAQ

How do I calculate profit margin in Excel?

Subtract total cost from selling price, divide by selling price, and format as a percentage. Example: =(B2-C2)/B2.

What is the difference between margin and markup?

Margin divides profit by selling price. Markup divides profit by cost.

What costs should ecommerce sellers include?

Include product cost, shipping, platform fee, tax, payment fee, packaging, and any other per-order cost.

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