Free tool for store owners
Profit Margin & Selling Price Calculator
See what you really make on every product after product cost, shipping, packaging, platform commission, payment fees, ad cost and VAT — or find the selling price for the margin you want.
- Every cost in one place
- Price from target margin
- VAT handled correctly
Result per product
Enter the product cost and a selling price (or target margin).
Developed by Ahmed Elshamy All free tools
How it works
Three simple steps
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Enter product costs
Product cost, shipping, packaging and ad cost per order.
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Add fees and VAT
Platform commission, payment gateway fees and your VAT rate.
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Choose what to calculate
Net profit at a given price, or the price needed for a target margin.
Margin vs. markup
Profit margin = profit ÷ selling price (excluding VAT). Markup = (selling price − product cost) ÷ product cost. A product that costs 50 and sells for 100 has a 50% gross margin but a 100% markup.
Many merchants only subtract product cost from price, then discover shipping, commissions, payment fees and ads ate most of the profit. This calculator includes all of them and extracts VAT from the inclusive price correctly.
FAQ
Good to know
How do I calculate profit margin?
Subtract every cost (product, shipping, packaging, commissions, payment fees, ads) from the selling price excluding VAT, divide by that price and multiply by 100.
How do I set a price for a target margin?
Choose “Price from margin” and enter your target. The tool accounts for commissions and payment fees being a percentage of the price itself — so simply adding the margin to costs isn’t enough.
Should I enter the price including VAT?
Yes — enter what the customer pays including VAT and choose your VAT rate; the tool extracts the VAT and calculates profit on the net price. Choose 0% if you’re not VAT-registered.
Where do I find platform and payment fees?
In your platform plan (e.g. Salla, Zid or Shopify) and your payment gateway agreement. Rates vary by plan and payment method, so the tool lets you enter yours exactly.
What is ad cost per order?
The average ad spend needed to get one order (CPA). You can get it from the ROAS calculator: spend ÷ orders.