Profit margin calculator

This easy calculator will help you determine selling prices for your products in order to save money and increase profits

Cost of item you are going to resell
Markup percentage that is used to determine your selling price

Profit margin calculator results

Your sale price


Your profit


Gross margin


Need to develop an effective pricing strategy for your business? First, you’ll need to figure out your markups and profit margins.

Shopify’s easy-to-use profit margin calculator can help you find a profitable selling price for your product.

To start, simply enter your gross cost for each item and what percentage in profit you’d like to make on each sale. After clicking “calculate”, the tool will run those numbers through its profit margin formula to find the final price you should charge your customers.

From there, you can effectively price your products and start profiting off each sale.

Browse profit margin calculator by industry

Profit margin calculator for Services and commerce


Profit margin indicates the profitability of a product, service, or business. It’s expressed as a percentage; the higher the number, the more profitable the business.

It’s simple to find gross profit margin automatically using the calculator. To calculate manually, subtract the cost of goods sold (COGS) from the net sales (gross revenues minus returns, allowances, and discounts). Then divide this figure by net sales, to calculate the gross profit margin in a percentage.

Shopify’s free profit margin calculator does it for you, but you can also use the following formula:

    1. Step 1: X (Net sales) - Y (COGS) = Z
    1. Step 2: Z / X (Net sales) = % Gross profit margin

Follow these easy steps to calculate a 20% profit margin:

  • 1. Use 20% in its decimal form, which is 0.2.
  • 2. Subtract 0.2 from 1 to get 0.8
  • 3. Divide the original price of your good by 0.8
  • 4. The resulting number is how much you should charge for a 20% profit margin

Shopify’s free profit margin calculator is fast and easy to use, to get started:

  • 1. Go to
  • 2. Enter your information into the online form
  • 3. Click “Calculate profit”

The profit margin calculator is a free tool Shopify offers to businesses. That means there is no cost to use it.

Just starting out?

Get the help you need to start your business with Shopify Learn, Burst, and Hatchful

Find products to sell - examples of clothing

Find products to sell in your store

Shopify has dropshipping apps that can help you start selling to customers within minutes, without the hassle of inventory, packing and shipping.

Find products

Business e learning - Shopify Learn brand logo

Find business courses on Shopify Learn

Get direct access to answers, lessons, and advice from the best minds in modern business.

Start learning for free

Free stock photos - Burst brand logo

Find free high-quality photos on Burst

Make your business stand out with high-quality photos from professional photographers.

Browse free stock photos

Logo maker - Hatchful brand logo

Create stunning logos in seconds

Create professional logos in just a few clicks with our logo maker. No design experience necessary.

Create your logo

Wholesale marketplace - Shopify Handshake brand logo

Find your next best seller on Handshake

Handshake is a wholesale marketplace by Shopify. Source incredible products from one-of-a-kind brands.

Shop wholesale