Profit Margin Calculator
See how much of your revenue remains after the costs you include.
Formula
Profit = revenue − cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100.
Worked example
For an illustrative $80 revenue and $52 cost, profit is $28, margin is 35%, and markup is approximately 53.85%.
What to include
Use revenue and costs for the same item or period. This is not automatically gross or net profit: that depends on which costs you enter. No platform fees, taxes, or overhead are added automatically.
For the denominator difference and target-price examples, read Margin vs markup: how to calculate each.
Zero costs and losses
Revenue must be positive. Zero cost gives 100% margin and undefined markup. Cost above revenue produces a loss and negative margin. Money is handled in cents; percentages display up to two decimals.
For a target price, use the Product Pricing Calculator.
Definition reference: Shopify profit reports. This is not a Shopify fee estimate.