Free tool

Margin calculator: what is really left per sale?

Enter price, cost of goods, shipping, fees, ads and returns. You see profit, margin and the minimum price. No sign-up, nothing is saved.

In short: Margin in percent = profit ÷ net selling price × 100. What matters is the real profit: after cost of goods, shipping, payment fees, ads and returns. The calculator shows it per sale and per month.

Your product

Selling price is
%

Fees, advertising, returns

%

Ad budget divided by sales.

%

Return shipping and handling. The goods are resold.

Your result

Profit per sale
€10.80
After all costs, before tax.
Profit margin
21.4%
Profit divided by net revenue.
Net selling price€50.34
Purchase price€18.00
Shipping€4.50
Payment fee€1.21
Advertising€12.00
Returns (pro rata)€3.83
Markup on purchase price180%
Minimum net price for zero profit€38.08
Profit per month at 100 sales€1,080

Markup = the percentage you add to the purchase price. Margin = the percentage of revenue that remains as profit. Nothing is saved or sent.

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Margin works? Then your store needs more visitors.

Once you know what is left per sale, you can use advertising deliberately. Next, calculate your break-even ROAS.

How to calculate margin: formula, example and common mistakes

Margin shows what percentage of net revenue remains as profit. Markup shows what percentage you add to the purchase price. The two are often confused, but give different percentages for the same numbers.

The formulas

  • Net = gross ÷ (1 + VAT rate).
  • Profit = net − cost of goods − shipping − payment fee − advertising − return loss.
  • Margin = profit ÷ net × 100.
  • Markup = (net − cost of goods) ÷ cost of goods × 100.

Example

Gross €59.90 (net €50.34), cost of goods €18, shipping €4.50, payment fee 1.9% plus €0.25, advertising €12, 10% returns at €6 per return. The markup on cost looks huge, the real profit per sale is much smaller. That is exactly what the calculator shows.

Common mistakes

  • Comparing the gross price with net costs.
  • Leaving out advertising, shipping and returns.
  • Confusing margin and markup.
  • Treating profit before tax as profit after fixed costs.

The calculator runs entirely in your browser. Your inputs are not saved and not sent anywhere. It does not replace tax or legal advice.

Frequently asked questions

How do I calculate margin?

Margin in percent = profit ÷ net selling price × 100. Example: net price €50, profit €10 gives a 20% margin.

What is the difference between margin and markup?

Margin relates to the selling price, markup to the purchase price. Purchase €20, net sale €30: markup 50%, margin about 33%.

How do I work out the selling price from the purchase price?

Use the calculator and check the minimum price for zero profit. Only above it do you earn money. Then decide how much profit per sale you want.

How do I convert gross to net?

Net = gross ÷ (1 + VAT rate). At 19% VAT: €59.90 gross is €50.34 net. The calculator does this automatically when you choose “Gross”.

Which costs belong in the calculation?

Purchase price, shipping, payment fees, advertising per sale and returns. If you only deduct the purchase price, you calculate yourself richer than you are.

Is this profit after tax?

No. The calculator shows profit before tax and before fixed costs such as rent, subscriptions and salaries.