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Margin Calculator

Profit margin is the share of your sale price you keep as profit — and it is not the same as markup. On a $50 sale with a $10 item cost and $5 of other costs, profit is $35, margin is 70.0%, markup is 233.3% and ROI is 350%. Use this calculator to get all four numbers instantly.

Fees checked October 2026 · Works for any marketplace

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YOUR PROFIT

$35.00

Sale $50.00 minus total costs $15.00 = $35.00 profit.

Profit margin70.0%
Markup233.3%
ROI350%
Total costs$15.00

Margin is profit divided by sale price. Markup is profit divided by total costs. ROI here is profit divided by item cost — the return on the money tied up in the item itself.

Free forever · No sign-up · 2026 fee rates · Your numbers stay in your browser

Margin on a $50 sale — worked example

At the defaults — $50 sale, $10 item cost, $5 other costs:

LineAmount
Sale price$50.00
Item cost$10.00
Other costs (shipping, fees)$5.00
Total costs$15.00
Profit$35.00
Profit margin (35 / 50)70.0%
Markup (35 / 15)233.3%
ROI (35 / 10)350%

Margin vs markup — do not mix them up

MeasureFormulaOn a $50 sale
Profit marginProfit / sale price35 / 50 = 70.0%
MarkupProfit / total costs35 / 15 = 233.3%
ROIProfit / item cost35 / 10 = 350%

Margin can never exceed 100%, because profit can never exceed the sale price. Markup has no ceiling — a $10 item sold for $50 is a 400% markup before other costs, but only an 80% margin. When a guide says “good margin,” it usually means margin, not markup.

How to calculate margin

Profit = sale price – item cost – other costs (shipping, fees, packaging). Margin = profit / sale price x 100. Markup = profit / total costs x 100. ROI = profit / item cost x 100. Put every real cost into “other costs” — marketplace fees, shipping you paid, packaging, gas — or the margin will flatter you.

5 tips for healthier margins

Frequently Asked Questions

What is a good profit margin for reselling?

Many resellers target 30-50% after all costs, but it varies by category. Thin, high-volume categories can work at 20%, while rare or refurbished items often need 50% or more. See our guide to good profit margins for reselling (coming with the Phase 2 guides).

What is the difference between margin and markup?

Margin divides profit by the sale price; markup divides profit by costs. On a $50 sale with $15 total costs and $35 profit, margin is 70.0% and markup is 233.3%.

Can profit margin be over 100%?

No. Profit is part of the sale price, so margin tops out below 100%. If you see a margin over 100%, a cost was missed or the formula used markup by mistake.

Does this calculator include marketplace fees?

Only if you include them. Enter your platform fee total in “other costs” — or use a platform calculator first and bring the fee number here.

What is ROI for a reseller?

Return on the money tied up in inventory: profit divided by item cost. A $35 profit on a $10 item is 350% ROI — your money more than tripled on that item.

Related tools & resources

Estimate only — not tax or business advice. Fees checked October 2026.