Profit Margin Calculator
Find your gross profit, profit margin, and markup in seconds — so you know exactly how much room you have to spend on ads.
Your numbers
Your results
Profit margin
50.00%
You keep $25.00 of every $50.00 sale.
Gross profit
$25.00
Per unit
Markup
100.00%
Profit over cost
Thin margins make every ad dollar count. Loore learns what's already working in your account and generates winning ad variations on autopilot.
Start freeFrequently asked questions
- How do you calculate profit margin?
- Profit margin = (selling price − total cost) ÷ selling price × 100. For example, a $50 product that costs you $30 has a $20 profit and a 40% profit margin.
- What is the difference between margin and markup?
- Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. A $20 profit on a $50 price is a 40% margin, but on a $30 cost it is a 67% markup. Same profit, two different percentages.
- What is a good profit margin?
- It varies by industry, but many e-commerce brands aim for a gross margin of 50–70% before ad spend so there is room to stay profitable after advertising and overhead. The higher your margin, the more you can afford to spend acquiring customers.
- Should I include shipping and fees in the cost?
- Yes. For an accurate margin, include every per-sale cost — product cost (COGS), shipping, payment processing fees, and packaging. Use the "other costs per sale" field for everything beyond the base product cost.