Margin & Reverse Margin Calculator

Calculate net profit margin by entering selling price, cost price, and additional fees. Analyze profitability and optimize pricing for your products or services.

Margin Calculator

Calculate net profit margin by entering selling price, cost price, and additional fees. Analyze profitability and optimize pricing for your products or services.

Input

Selling Price / Cost Price / Market Fee

Selling price must be greater than 0.

Enter a selling price and fee settings to start the margin analysis.

Cost Structure

Smart Tool: Find Selling Price

Formula and decision logic

Margin analysis compares revenue against direct costs, fees, VAT, and shipping to show whether the selling price actually leaves profit.

Net profit = revenue - product cost - platform fee - VAT - shipping cost

Worked examples

Marketplace item

Input: Selling 25000, cost 15000, fee 10.8%, shipping 3000

Result: Net profit and margin depend on every deducted cost, not price gap alone

Reverse pricing

Input: Target margin 20%

Result: Recommended selling price must exceed both cost and fee drag

How to use this calculator

  1. 1Enter the selling price
  2. 2Enter the cost price and any additional fees
  3. 3View the net profit and margin percentage

How to read the result

  • A product can look profitable on the surface but still become low-margin once fees and tax are included.
  • Margin rate is best used together with net profit because a healthy percentage on a tiny amount may still be weak.

Common input mistakes

  • Ignoring marketplace fees, VAT, or actual shipping cost when judging profitability.
  • Using customer-paid shipping as if it were pure profit.

Frequently asked questions

What is profit margin?

Profit margin is the percentage of revenue that remains as profit after all costs and expenses are deducted.

How do I calculate net profit?

Enter the selling price, cost price, and any additional fees. The calculator shows your net profit and margin percentage.

What is a good profit margin?

It varies by industry, but generally 10-20% net profit margin is considered healthy for most businesses.

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