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11:00 AM - 10:00 PMCalculate net profit, gross profit margin, markup percentage, and break-even point. Get a complete profitability analysis for any product, service, or business.
Enter product details to compare profitability side by side.
Enter your revenue and costs
to see profit analysis
Getting your numbers takes less than a minute. Here's how each mode works:
Perfect for a quick check. Just enter your selling price and cost of goods. The calculator instantly shows your gross profit, net profit (after expenses and taxes), profit margin percentage, markup percentage, and break-even ROAS. If you sell multiple units, enter the quantity to see total profit.
This is where it gets interesting. Advanced mode breaks down every cost that eats into your margin — shipping, packaging, payment processing fees, marketplace commissions, monthly overhead, and return rates. Most people underestimate their true costs by 15-25%. This mode fixes that.
Selling more than one product? Add up to five products and compare their profitability side by side. It's a fast way to figure out which products deserve your advertising budget and which ones are dragging down your margins.
Whether you're running an online store, a service business, or selling on Amazon — the profit formulas are the same. Let me walk through each one so you actually understand what the numbers mean.
Gross profit tells you how much money is left after paying for the product itself. It doesn't account for operating expenses, marketing, or overhead. Think of it as your starting point — the raw margin before everything else takes a bite.
Net profit is what you actually keep. It accounts for every expense your business incurs — COGS, shipping, payment processing, platform fees, software subscriptions, rent, marketing spend, taxes. This is the number that matters most because it's what ends up in your bank account.
This trips people up all the time. Both measure profitability, but they use different denominators:
| Profit Margin | Markup | |
|---|---|---|
| Formula | Profit ÷ Revenue × 100 | Profit ÷ Cost × 100 |
| Based on | Selling price | Cost price |
| Can exceed 100%? | No (max is 99.9%) | Yes (200%, 500%, etc.) |
| Example | Buy at $60, sell at $100 → Margin = 40% | Buy at $60, sell at $100 → Markup = 66.7% |
| Best for | Financial reporting, comparing businesses | Setting prices, retail pricing |
A 50% markup is NOT a 50% margin. 50% markup = 33.3% margin. A 100% markup = 50% margin. Use our calculator to avoid confusion — it shows both numbers simultaneously.
This depends heavily on your industry, business model, and scale. Here's what I typically see across different sectors:
| Industry | Avg Gross Margin | Avg Net Margin |
|---|---|---|
| Software / SaaS | 70-85% | 15-30% |
| Ecommerce (DTC) | 40-60% | 10-20% |
| Retail (General) | 25-50% | 5-10% |
| Food & Beverage | 30-50% | 3-9% |
| Manufacturing | 25-40% | 5-12% |
| Consulting / Services | 50-80% | 15-25% |
| Amazon FBA | 25-40% | 8-18% |
| Dropshipping | 15-30% | 5-15% |
A few things to keep in mind. High gross margin doesn't mean high net margin — SaaS companies have huge gross margins but spend heavily on marketing and engineering. Amazon FBA sellers might show decent gross margins but get squeezed by FBA fees, PPC costs, and return rates.
The healthiest businesses I've worked with tend to have net margins of at least 15%. Below 10% and you're vulnerable to cost increases wiping out your profit. Below 5% and a single bad month can put you underwater.
Your margin isn't fixed. Here are practical levers you can pull:
Use the calculator above to see exactly where your profit stands — and where you can improve.
↑ Back to CalculatorBreak-even is the number of units you need to sell before you start making a profit. Every sale before that point is just paying off your fixed costs.
Why does this matter? Because if your marketing plan assumes you'll sell 200 units per month, you need to know you'll still be underwater. Break-even analysis stops you from building plans on assumptions that don't cover your costs.
Profit equals revenue minus total costs. Add up everything you spend to make and deliver a sale — product cost, shipping, fees, overhead — and subtract that total from your selling price. What's left is your profit. For example, selling a product at $100 with $65 in total costs gives you $35 profit.
20% profit on a $100 sale means $20 in profit. Your costs for that item would be $80. The margin is 20% (profit ÷ revenue) and your markup would be 25% (profit ÷ cost). People often confuse margin and markup here — 20% margin is not the same as 20% markup.
A 30% profit margin means you keep 30 cents of profit from every dollar of revenue. On a $100 sale, your profit is $30 and your costs are $70. A 30% margin is considered solid in most industries — particularly in ecommerce, retail, and services. It means your business has a healthy buffer against cost increases.
Profit margin is calculated by dividing profit by revenue and multiplying by 100. The formula: Profit Margin = (Revenue − Costs) ÷ Revenue × 100. For gross margin, use only COGS as the cost. For net margin, include all expenses. Example: revenue $80, total costs $52 → margin = ($80−$52) ÷ $80 × 100 = 35%.
Margin uses revenue as the base (profit ÷ selling price), while markup uses cost as the base (profit ÷ cost). Same profit number, different perspective. Buying at $60 and selling at $100: the $40 profit represents a 40% margin but a 66.7% markup. Margin can never exceed 100%, but markup can go as high as you want — a $10 product sold for $100 has a 90% margin but a 900% markup.
Gross profit is simply revenue minus the cost of goods sold (COGS). The formula: Gross Profit = Revenue − COGS. It only accounts for the direct cost of the product itself — not operating expenses, marketing, or overhead. If you sell a product for $50 and the COGS is $18, your gross profit is $32.
Net profit margin is the percentage of revenue left over after subtracting absolutely all expenses — COGS, operating costs, shipping, marketing, taxes, interest, overhead, everything. It's the most complete measure of profitability. Formula: Net Margin = (Revenue − All Expenses) ÷ Revenue × 100. Healthy net margins typically range from 5% to 20% depending on industry.
Divide your total fixed costs by your profit per unit. Formula: Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost). If your monthly fixed costs are $3,000 and you make $15 profit per unit, you need to sell 200 units per month to break even. Everything beyond 200 units is pure profit.
Last updated: January 2025. This calculator is free to use with no limitations.
