Profit margin calculator
Margin and markup are easy to confuse. Enter your cost and price to see both, plus the price you would need to hit common margin targets.
How to use this tool
- 1Enter your total cost per unit.
- 2Enter your selling price.
- 3Read profit, margin and markup.
- 4Check the prices needed for 50% and 70% margins.
- 5Use the margin in the ROAS calculators.
Margin vs markup
Margin is profit divided by price. Markup is profit divided by cost. A product that costs 18 dollars and sells for 45 dollars makes 27 dollars of profit, a 60% margin and a 150% markup.
| Margin | Markup |
|---|---|
| 25% | 33% |
| 40% | 67% |
| 50% | 100% |
| 60% | 150% |
| 75% | 300% |
Why margin matters for advertising
Your margin sets your break-even ROAS. Higher margins let you pay more for each customer, outbid competitors and test more creative.
Frequently asked questions
What is a good profit margin?
For brands that advertise on Meta, gross margins above 60% give comfortable room for ad costs. Lower margins need higher conversion rates or order values.
How do I convert markup to margin?
Margin equals markup divided by one plus markup. A 100% markup is a 50% margin.
Should cost include shipping?
Include every cost you pay per unit, such as product, packaging and shipping, to get a true margin.
Can margin be over 100%?
No. Margin is a share of price, so it is always below 100%. Markup can exceed 100%.
How do I raise my margin?
Raise prices, bundle products, lower supplier costs or move to higher value variants.
See which Facebook and Instagram ads your competitors keep running, the clearest signal of what is profitable in your niche.