Use the price the customer will pay
Enter the selling price per unit for the scenario you are testing. For a promotion, use the discounted price rather than the usual list price.
Understand each sale
What is left from each product I sell?
Look beyond the gap between buying and selling prices. Include fulfilment and percentage selling fees to see the contribution each unit leaves for advertising, overhead and profit.
Start the calculatorFree to use. Results after contact details.
IS THIS THE RIGHT TOOL?
For sellers comparing products, setting prices or checking the room available for a discount.
YOUR BUSINESS DECISION
Product Profit Margin Calculator
Start with your own figures or use the example inputs. Complete the steps, then share contact details to reveal your free result.
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MAKE THE INPUTS USEFUL
Before you begin.
Capture costs on the same unit basis
Enter product cost and fulfilment cost for one unit. If your orders contain several items, allocate shared packing and delivery costs consistently before entering them.
Include the percentage selling charge
Enter the selling-fee percentage that applies to the price in this scenario. Use the same currency for all amounts. Any cost you leave out will also be absent from the contribution result.
What your result means.
Contribution per unit is the amount remaining after the entered product, fulfilment and selling costs. Contribution margin expresses that amount as a share of the selling price. A positive result still needs to cover any advertising, fixed overhead and taxes not included in your inputs; it is not net profit.
Selling price to contribution per unit
COMMON QUESTIONS
Understand the decision.
Why is margin different from markup?
This tool reports contribution margin: the selling price less product cost, fulfilment cost and percentage selling fees, expressed as a share of the selling price. Markup compares a price increase with a cost base. The two percentages use different denominators and are not interchangeable.
Should I use my list price or discounted price?
Use the amount you expect to receive for the item after the discount. Otherwise the calculation will overstate what remains from that sale.
Does the result include advertising and overheads?
There is no separate advertising or fixed-overhead field. The result deducts the product cost, fulfilment cost and percentage selling fee you enter. Any advertising, rent, salaries and taxes not included in those amounts still need to be covered by the contribution.
Can I use this to decide how much to discount?
Yes. Keep the product and fulfilment costs consistent, lower the selling price and calculate again. Selling fees follow the new price automatically. Compare contribution per unit and margin before deciding whether the expected extra sales justify the lower amount retained per sale.
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