Profit Margin Calculator – Free Tool for Online Sellers and Small Businesses
Enter your selling price and costs, including marketplace commission, shipping, payment fees, GST and ad spend per order. See your real profit per order, margin and markup, and the most you can spend on ads.
Margin vs Markup: What Is the Difference?
Both compare cost and price, but from different sides. Mixing them up is a common reason sellers price too low.
| Term | Formula | Example (cost ₹400, price ₹600) |
|---|---|---|
| Gross profit | Price − cost | ₹200 |
| Margin | Profit ÷ price × 100 | 33% |
| Markup | Profit ÷ cost × 100 | 50% |
| Net margin | Profit after all fees, GST and ads ÷ price | Usually much lower |
Tips to Protect Your Margin
Count every cost
Commission, shipping, packaging, payment fees and returns add up fast. Leave none out.
Remember GST
If you are registered, the GST inside your price goes to the government, not to you.
Know your ad limit
"Max ad cost per order" is your break-even CPA. Check ad efficiency with our break-even ROAS calculator.
Sell bundles
Bigger orders spread shipping and ad costs over more products.
Sell on your own site too
No marketplace commission. Bring traffic with SEO and WhatsApp marketing.
Think long term
Repeat customers are cheaper. Estimate their value with our LTV calculator.
Grow Sales Without Losing Profit
Know your numbers, then scale with ads and SEO. Learn e-commerce marketing hands-on in our small-batch classes in Coimbatore.
Frequently Asked Questions
How do you calculate profit margin?
Profit margin = (profit ÷ selling price) × 100. Profit is the selling price minus all costs: product, fees, shipping, GST and ads.
What is the difference between margin and markup?
Margin compares profit to the selling price. Markup compares profit to the cost. A 50% markup is only a 33% margin.
How is GST handled in this calculator?
If your price includes GST, the tool removes the GST part first, because you pay it to the government. Choose No GST if you are not registered.
What is a good profit margin for online sellers?
It varies by product, but after all fees and ads many sellers aim for at least 15–20% net margin to stay safe from returns and rising ad costs.
What does "max ad cost per order" mean?
It is your profit before ads. If you spend more than this on ads to get one order, you lose money on that order.
Is this profit margin calculator free?
Yes. It is free, needs no login, and works in your browser.
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