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Tool · Profit margin calculator

Profit margin calculator, after every cost.

Margin is profit divided by price. The margin that pays you is the one after the platform's fees, postage, ads, refunds and the duty to bring the product in. A product with a 63% gross margin keeps 29.1% on Shopify and 17.8% on Amazon. Work out yours, or the price for the margin you want.

Checked by the BaseAcross team.

The three numbers

Margin
Profit ÷ price$15 on a $40 sale is 37.5%
Markup
Profit ÷ cost$15 on a $25 cost is 60%
Price for a margin
Cost ÷ (1 − m)$25 at 50% is $50
50% margin
100% markupNot 50%
01 · Calculate

What do you keep from a sale?

Pick where it sells: the platform's fees are worked out the same way our fee calculators work them out. Or set the margin you want and get the price.

Basic, Shopify Payments: 2.9% + 30¢ · every fee in full

Landing it in the US
Selling it
Profit margin, after everything
29.1%
$11.64 profit on a $40.00 sale
  • Product$12.00
  • Freight to the US$1.50
  • US import duty, 10%$1.20
  • Your own Shopify store fees$1.46
  • Postage, packing and fulfilment$6.00
  • Advertising per sale$5.00
  • Refunds, 3% of sales$1.20
  • You keep$11.64
Gross margin
63.3%
Markup
172%
Most for ads
$16.64

Gross margin counts only the landed product. Markup is profit on that landed cost. "Most for ads" is what one sale can spend on advertising and still break even. Income tax isn't counted.

02 · By channel

One product, sold seven ways.

A $40 product that costs $12, lands for $14.70 with freight and 10% duty, ships for $6, takes $5 of ads a sale and 3% refunds. Its gross margin is 63.3%.

The same product's margin after every cost, by sales channel, for a US company selling to US buyers
Sold throughPlatform feesYou keepMargin
Your own Shopify store$1.46$11.6429.1%
Your own site, Stripe$1.46$11.6429.1%
PayPal Checkout$1.89$11.2128%
Etsy$4.25$8.8522.1%
eBay$5.84$7.2618.1%
Amazon$6.00$7.1017.8%
Direct or wholesale$0.00$13.1032.8%

Amazon's figure is the referral fee alone; its fulfilment fee goes in postage and packing. To keep 30% on Shopify the same product would sell for $40.58.

03 · Margin and markup

The markup each margin needs.

And the price for an item that costs $10.

Margin to markup conversion, with the price for a $10 item
MarginMarkup on costPrice for a $10 item
10%11.11%$11.11
20%25%$12.50
25%33.33%$13.33
30%42.86%$14.29
40%66.67%$16.67
50%100%$20.00
60%150%$25.00
70%233.33%$33.33
04 · Landed cost

Bringing stock into the US.

The costs between the factory and your customer, which a margin on the factory price leaves out.

  • Freight, per unit. Divide the shipment's cost by the units in it: sea, air or courier, to a warehouse or straight to the customer.

  • Duty, on the customs value. The rate comes from the product's tariff classification, and extra tariffs can apply by country of origin. Check the rate for your product before you price.

  • Postage and packing. What each order costs to send, including any fulfilment centre's fee.

05 · Questions

Questions about profit margin.

If yours is not here, email us at hello@baseacross.com before you order.

Take the price, subtract what the sale cost you, and divide by the price. A $40 sale that cost $25 leaves $15, a 37.5% margin. Count every cost of the sale, not only the product, or the margin will flatter you.

Ready when you are

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