Profit Margin Calculator

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.


๐Ÿ” What This Calculator Does

With just a few inputs, the calculator instantly shows:

  • โœ… Total Cost

  • โœ… Net Profit

  • โœ… Profit Margin (%)

  • โœ… Visual Profit Chart

  • โœ… Downloadable PDF & CSV reports

This helps you price products correctly, avoid losses, and scale your business confidently.


๐Ÿงพ Step-by-Step: How to Use the Calculator

1๏ธโƒฃ Select Currency

Choose your preferred currency from the dropdown:

  • โ‚น INR (India)

  • $ USD (United States)

  • AED (UAE)

The selected currency will be used in all calculations and reports.


2๏ธโƒฃ Enter Base Cost

Base Cost includes:

  • Product purchase cost

  • Packaging

  • Shipping or fulfillment cost

๐Ÿ“Œ Example: 200


3๏ธโƒฃ Enter GST / VAT (%)

Enter the applicable tax percentage:

  • India: GST (e.g., 18%)

  • UAE: VAT (5%)

  • Other regions: Sales tax (if applicable)

๐Ÿ“Œ Example: 12


4๏ธโƒฃ Enter Platform Commission (%)

This is the commission charged by marketplaces such as:

  • Amazon

  • Flipkart

  • Meesho

  • Etsy

  • Shopify payment gateways

๐Ÿ“Œ Example: 10


5๏ธโƒฃ Enter Advertising Cost

Add your ad spend per sale, such as:

  • Facebook Ads

  • Google Ads

  • Instagram Ads

๐Ÿ“Œ Example: 12


6๏ธโƒฃ Enter Selling Price

This is the final price paid by the customer.

๐Ÿ“Œ Example: 4


7๏ธโƒฃ Click CALCULATE

Once you click CALCULATE, the result will instantly appear below the button, showing:

  • Total Cost โ€“ all expenses combined

  • Profit โ€“ money earned after costs

  • Profit Margin (%) โ€“ profitability percentage


๐Ÿ“ˆ Understand the Profit Chart

A bar chart is displayed showing:

  • Selling Price

  • Total Cost

  • Net Profit

This visual view makes it easy to compare earnings at a glance.


๐Ÿ“„ Export Your Results

๐Ÿ“ฅ Download as CSV

Click CSV to:

  • Open results in Excel or Google Sheets

  • Use for accounting or analysis

๐Ÿ“ฅ Download as PDF

Click PDF to:

  • Save a professional profit report

  • Share with partners, clients, or accountants


๐Ÿงฎ How Profit Is Calculated

Total Cost =
Base Cost + GST/VAT + Commission + Ad Cost

Profit =
Selling Price โˆ’ Total Cost

Profit Margin (%) =
(Profit รท Selling Price) ร— 100


๐Ÿ’ก Why Use This Profit Margin Calculator?

  • โœ” Prevent underpricing

  • โœ” Identify hidden costs

  • โœ” Improve ad ROI

  • โœ” Make data-driven pricing decisions

  • โœ” Save time with instant reports


๐Ÿ‘ฅ Who Should Use It?

  • ๐Ÿ›’ E-commerce sellers

  • ๐Ÿ“ฆ Dropshippers

  • ๐Ÿช Retail & wholesale businesses

  • ๐Ÿง‘โ€๐Ÿ’ผ Service providers

  • ๐Ÿ“Š Business analysts


โš ๏ธ Important Tips

  • Always include all real costs for accurate profit

  • Update ad cost regularly

  • Recalculate before running paid ads

  • Low profit margin = higher business risk


๐Ÿš€ 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.