Free profit margin calculator

Start with your monthly revenue, then set each cost below it: cost of goods, ad spend, fees and shipping, and everything else from software to payroll. The result panel keeps a running total of your take-home profit, your profit margin, your return on ad spend and the share of revenue each cost is eating. Switch between monthly and annual to see the same ratios at a yearly scale.

The margin is the number to watch. Profit on its own rises and falls with how busy a month was. Margin strips that out, so a quiet month and a busy one can be compared directly. If you want the step-by-step method behind the result, read how to calculate net profit.

Profit margin is profit as a percentage of revenue. Subtract every cost from revenue to get profit, divide by revenue, then multiply by 100.

There is no universal target. A healthy margin for a high-volume retailer looks nothing like one for a software product or a service business, and heavy ad spend can make a strong top line thin out fast. Chasing a number you read somewhere is less useful than knowing your own margin and whether it is moving the right way.

The practical approach is to measure your margin on a fixed method every month, keep it beside the previous months, and read the trend. A margin climbing from 9 to 12 percent tells you more than any outside benchmark. For how to think about the number for your situation, read what is a good profit margin, and if you sell physical products, e-commerce profit margin explained goes deeper on the costs that quietly eat into it. Setting prices from scratch? How to price a product works backward from the margin you want.