Profit versus margin
Profit is revenue minus entered costs. Profit margin is profit divided by revenue. If a $100 order has $60 of costs, profit is $40 and margin is 40%.
Estimate profit per order, margin, break-even selling price, and target price from your product and selling costs.
Start with the item price and any shipping paid by the buyer. Subtract product, inbound freight, delivery, platform and payment fees, advertising, and other per-order costs. The result is estimated profit for that order.
Profit is revenue minus entered costs. Profit margin is profit divided by revenue. If a $100 order has $60 of costs, profit is $40 and margin is 40%.
The calculator solves for the lowest item price that covers your entered costs at a zero percent margin. The target-price result solves for the margin you choose.
Default values illustrate one order. Replace every fee and cost with current figures from your sales channel; taxes and costs you omit are not included.
Selling on a marketplace? Estimate Amazon FBA profit or estimate Etsy fees.
Ready to bill a client? Create an invoice after checking your costs.