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Free General Profit Margin Calculator

Enter your product revenue and costs to instantly calculate net profit, ROI, and profit margin for any business model.

Enter Your Numbers

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Tip: Include all costs — packaging, returns, and payment processing — for the most accurate margin.

Your Results

Total Cost $0.00
Net Profit $0.00
ROI 0.00%
Profit Margin 0.00%

How the Calculation Works

Net Profit = Revenue − (Product Cost + Fees + Ads + Shipping)

ROI = (Net Profit ÷ Total Cost) × 100

Profit Margin = (Net Profit ÷ Revenue) × 100

General Profit Calculator FAQ

A healthy e-commerce profit margin typically falls between 15% and 30%. Margins below 10% can make it difficult to sustain a business after accounting for unexpected costs, returns, or ad spend increases.
Include all direct costs: product/COGS cost, platform or marketplace fees, payment processing fees, advertising spend, shipping and handling, and a portion for returns or refunds. Excluding any of these will overstate your actual profit.
Profit margin measures profit as a percentage of your selling price (Revenue). ROI measures profit relative to what you invested (Total Cost). Both are useful: margin tells you how efficiently you price, ROI tells you how well your capital is working.
You break even when Net Profit = $0, meaning your Revenue equals Total Cost. To break even, your selling price must cover all product costs, fees, ads, and shipping. Use this calculator to find the minimum price that covers your costs.
Yes. For digital products, simply set shipping to $0 and enter any applicable platform fees (e.g., Gumroad takes 10%, Etsy charges listing + transaction fees). The formula works for any product type.