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Profit Margin Calculator
Turn price and cost into margin, markup, and monthly profit — instantly.
Your numbers
Enter your price and cost — results update instantly.
$
$
All-in cost per unit
Profit margin
$18.49 / unit61.7%
Markup
160.8%
Profit ÷ costGross profit / unit
$18.49
Monthly profit
$5,547.00
300 unitsMonthly revenue
$8,997.00
See true margin on every order
Connect your store and ad accounts and the Captain calculates real net margin after fees, shipping and ad spend.
How it’s calculated
Gross margin = (Revenue − COGS) ÷ Revenue × 100
Net margin uses net profit (after all costs): Net profit ÷ Revenue × 100.
Worked example
- Revenue
- $100
- Cost of goods
- $60
- Result
- Gross profit $40 → gross margin 40%
The same $40 profit is a 67% markup on the $60 cost — margin and markup are not the same.
What your result means
Margin is profit as a share of revenue — the higher, the more each sale keeps. Gross margin (after cost of goods) sets your ceiling; net margin (after ads, fees, shipping and overhead) is what you actually keep. Healthy e-commerce net margins are often around 10–20%, but vary widely by model.
Common mistakes
- Confusing markup with margin — a 50% markup is only a 33% margin.
- Leaving out variable costs (fees, shipping, returns) so ‘profit’ looks bigger than it is.
- Judging overall health on gross margin alone — ad spend and overhead can erase it.
Learn how it works
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Frequently asked questions
What's the difference between margin and markup?
Markup is profit over cost; margin is profit over price. A $60 item sold for $100 has a 67% markup but a 40% margin.
What's a good profit margin?
It depends on the model — many DTC brands run 10–20% net, wholesale is thinner, digital products are fatter. Track your own trend over time.
Last reviewed 31 Jul 2026 · reviewed by the Dash Captain team.