MarketFees / Profit margin calculator
Profit margin calculator
Your real margin is what is left after the platform, the label and the item itself. Put all three in and get the number that matters, or work backwards from the margin you want.
37.6%
net profit margin
- Profit per sale
- $18.79
- Platform fees
- $7.20
- Markup on cost + shipping
- 78.3%
- Gross margin (before fees & shipping)
- 64.0%
The profit margin formula
Net profit = selling price − item cost − shipping − platform fees.
Net margin = net profit ÷ selling price × 100.
Example: you list a jacket at $49.99 on eBay. It cost $18, the label is $6, and eBay takes 13.6% plus $0.40 ($7.20). Profit is $18.79 and the margin is 37.6%. Without the fee line you would think it was 52%.
Price for a target margin
Because most fees are a percentage of the price, they come out of the same denominator as your margin. The price that delivers a target margin is (cost + shipping + fixed fee) ÷ (1 − margin − fee %). At 40% margin on eBay, a $24 all-in cost needs $24.40 ÷ 0.464 = $52.59.
Same dollars, two percentages
Margin divides profit by the price. Markup divides it by the cost. Drag the sliders and watch the profit block stay the same size while the two percentages drift apart.
Profit$20.00
Margin (÷ price)40.0%
Markup (÷ cost)66.7%
A 50% markup is only a 33.3% margin. Margin can never reach 100%; markup has no ceiling.
Margin to markup cheat sheet
| Margin | Equivalent markup | Price for $10 cost |
|---|---|---|
| 10% | 11.1% | $11.11 |
| 20% | 25.0% | $12.50 |
| 25% | 33.3% | $13.33 |
| 30% | 42.9% | $14.29 |
| 40% | 66.7% | $16.67 |
| 50% | 100.0% | $20.00 |
| 60% | 150.0% | $25.00 |
| 75% | 300.0% | $40.00 |
Converting is simple: markup = margin ÷ (1 − margin), and margin = markup ÷ (1 + markup). Need the other direction? Use the markup calculator.
Questions sellers ask
How do you calculate profit margin?
Subtract all costs from the selling price to get profit, then divide profit by the selling price. A $50 sale with $32 of costs has $18 profit and a 36% margin.
What is a good profit margin for an online reseller?
There is no single number, but many resellers aim for at least 30%–50% net margin after fees and shipping on low-priced items, because returns, unsold stock and time eat into it. Higher-priced items can work on thinner margins.
Should marketplace fees count as a cost?
Yes. Fees, shipping labels, packaging and ads are all costs of the sale. Leaving them out overstates your margin by 10–25 points on most platforms.
How do I find the price for a target margin?
Divide your cost by (1 − target margin). For $20 cost and a 40% margin: $20 ÷ 0.6 = $33.33. If a platform takes a percentage of the price, subtract that too: $20 ÷ (1 − 0.4 − 0.136) for eBay.
What is the difference between gross and net margin?
Gross margin only subtracts the cost of the goods. Net margin also subtracts fees, shipping and other selling costs. The calculator shows net margin when you enter fees.