Profit Margin Calculator
How to Use the Profit Margin Calculator
The Profit Margin Calculator helps you understand how much profit you make on a product or service after accounting for costs, taxes, commissions, and advertising expenses.
It is ideal for e-commerce sellers, dropshippers, wholesalers, retailers, and service providers.
๐ What This Calculator Does
With just a few inputs, the calculator instantly shows:
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โ Total Cost
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โ Net Profit
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โ Profit Margin (%)
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โ Visual Profit Chart
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โ Downloadable PDF & CSV reports
This helps you price products correctly, avoid losses, and scale your business confidently.
๐งพ Step-by-Step: How to Use the Calculator
1๏ธโฃ Select Currency
Choose your preferred currency from the dropdown:
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โน INR (India)
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$ USD (United States)
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AED (UAE)
The selected currency will be used in all calculations and reports.
2๏ธโฃ Enter Base Cost
Base Cost includes:
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Product purchase cost
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Packaging
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Shipping or fulfillment cost
๐ Example: 200
3๏ธโฃ Enter GST / VAT (%)
Enter the applicable tax percentage:
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India: GST (e.g., 18%)
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UAE: VAT (5%)
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Other regions: Sales tax (if applicable)
๐ Example: 12
4๏ธโฃ Enter Platform Commission (%)
This is the commission charged by marketplaces such as:
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Amazon
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Flipkart
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Meesho
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Etsy
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Shopify payment gateways
๐ Example: 10
5๏ธโฃ Enter Advertising Cost
Add your ad spend per sale, such as:
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Facebook Ads
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Google Ads
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Instagram Ads
๐ Example: 12
6๏ธโฃ Enter Selling Price
This is the final price paid by the customer.
๐ Example: 4
7๏ธโฃ Click CALCULATE
Once you click CALCULATE, the result will instantly appear below the button, showing:
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Total Cost โ all expenses combined
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Profit โ money earned after costs
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Profit Margin (%) โ profitability percentage
๐ Understand the Profit Chart
A bar chart is displayed showing:
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Selling Price
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Total Cost
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Net Profit
This visual view makes it easy to compare earnings at a glance.
๐ Export Your Results
๐ฅ Download as CSV
Click CSV to:
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Open results in Excel or Google Sheets
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Use for accounting or analysis
๐ฅ Download as PDF
Click PDF to:
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Save a professional profit report
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Share with partners, clients, or accountants
๐งฎ How Profit Is Calculated
Total Cost =
Base Cost + GST/VAT + Commission + Ad Cost
Profit =
Selling Price โ Total Cost
Profit Margin (%) =
(Profit รท Selling Price) ร 100
๐ก Why Use This Profit Margin Calculator?
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โ Prevent underpricing
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โ Identify hidden costs
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โ Improve ad ROI
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โ Make data-driven pricing decisions
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โ Save time with instant reports
๐ฅ Who Should Use It?
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๐ E-commerce sellers
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๐ฆ Dropshippers
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๐ช Retail & wholesale businesses
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๐งโ๐ผ Service providers
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๐ Business analysts
โ ๏ธ Important Tips
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Always include all real costs for accurate profit
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Update ad cost regularly
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Recalculate before running paid ads
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Low profit margin = higher business risk
๐ Final Note
The Profit Margin Calculator is a simple yet powerful tool to help you grow profitably.
Use it before pricing, advertising, or scaling your business.
