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Free tool · Paid ads

Profit margin calculator.

Work out your profit margin and markup from cost and price, and the return any ads need to break even at that margin.

Every free tool
  • No sign-up for the resultRun the numbers and see the answer straight away. Email only if you want the full report.
  • The formula shownCalculators show the formula and a worked example, so you can check the maths.
  • What to do nextEach tool reads your result and tells you the next step.
Profit margin40.0%
Profit per saleUS$40.00
Markup66.7%
Break-even ROAS for ads2.50x
Profit margin = (price - cost) / price x 100. Markup = (price - cost) / cost x 100.
What this means

You keep 40.0% of each sale, so any ads must return at least 2.50x to break even.

Up to US$40.00 per sale is available for marketing before you make a loss. Use the break-even ROAS calculator to plan ads around it.

Next: Break-even ROAS calculator
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Every figure, what it means and what to do next, with a private link you can share with your team.

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The formula

Profit margin = (price - cost) / price x 100. Markup = (price - cost) / cost x 100.

A worked example

A product costs 60 and sells for 100. Profit is 40, margin is 40% and markup is 66.7%. Ads must return at least 2.5x to break even.

How to read your result

  • Margin is the share of the price you keep; it decides how much you can spend to win a sale.
  • If margin is thin, raising order value often does more than any change to the ads.
More free toolsMarkup calculatorFind your selling price from cost and markup, and see the profit margin that price really gives you.Break-even ROAS calculatorThe return your ads need before they make money, from your profit margin, and the most you can pay in ads for each sale.ROAS calculatorSee your return on ad spend, the return you need to break even at your margin, and what the ads actually made after their cost.CPA calculatorWork out what each sale or sign-up costs you in ads, and how much profit is left after it.

Profit margin calculator: questions.

Anything else, ask us directly.

What is the difference between margin and markup?

Margin is profit divided by the selling price; markup is profit divided by the cost. A 50% markup gives a 33.3% margin.

How do I calculate profit margin?

Subtract the cost from the selling price, divide by the selling price and multiply by 100.

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