Pricing Updated 2026-07-15
Profit Margin Calculator
Calculate your profit margin percentage based on revenue and costs.
The formula
How the calculation works
Margin = (Revenue - Cost) / Revenue
Worked examples
Real-world scenarios
Healthy Retail Product
Standard retail markup.
60.0% Profit Margin
Digital Download
High margin digital product.
92.0% Profit Margin
Dropshipping Gadget
Tight margin product with high acquisition costs.
25.0% Profit Margin
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FAQ
Common questions
What is a good profit margin?
It varies by industry, but generally a 10% net profit margin is considered average, and 20% is considered high.
How is profit margin calculated?
Net Profit Margin = (Net Profit / Total Revenue) x 100.