Free tool

Profit margin calculator

Enter what an item costs you and what you sell it for. The tool takes off the commission, the shipping, the payment fee and the VAT, and shows what is actually left per unit.

Your numbers

What one unit costs you, delivered to your shelf.

What the buyer pays for one unit.

What the sales channel keeps. Zero on your own store.

The part of the parcel you carry, not what the buyer pays on top.

The percentage your payment provider keeps per order.

Per unit

Profit margin

Profit as a share of your revenue without VAT.

Profit per unit

Markup on cost:

Break-even price

Below this price the sale loses money.

Enter a cost and a price to see the margin.

This sale loses money at the price you entered.

Where the money goes

The buyer pays
VAT collected
Your revenue
Unit cost
Commission
Payment fee
Shipping
Total deductions
Left per unit

Nothing you type is sent anywhere. The calculation runs in your browser, and the page keeps no record of it.

These figures are an estimate, not tax or accounting advice. Check them against your own statement and the rules that apply to your business.

Read the definition: Average Order Value (AOV)

Marketplace or your own store

The same item, the same cost, the same price, sold through two channels.

Category commission, the per-shipment fee, the shipping deduction and, where the marketplace applies one, the withholding on the payout - the same figures the calculator for that marketplace uses.

Profit margin

Your own store

No commission on a sale; the payment fee above is the deduction.

Profit margin

Difference per unit

What the marketplace sale costs you compared with your own store.

Compiled from published sources, not from the marketplace itself. Check your own agreement.

What the price tag hides

Most sellers know their cost and their price, and read the gap between them as profit. It is not. Between the two sit a commission, a shipping deduction, a payment fee and the VAT you collected but do not own. A product that looks like a forty percent margin on paper often ends the month in single digits, and the difference only becomes visible once every deduction is written down in the same place.

This calculator writes them down. It splits the sale price into the VAT that belongs to the tax office and the revenue that belongs to you, applies the commission and the payment fee to the amount the buyer actually pays, subtracts your unit cost and the shipping you carry, and reports three numbers: the margin as a percentage of your revenue, the profit in money per unit, and the price at which the item stops losing money.

The break-even price is the one most calculators leave out, and it is the one that decides a campaign. Percentage fees follow the price, so covering a cost is not a matter of adding it on top: at a twenty percent commission every lira of discount costs you more than a lira of margin. The tool solves the whole equation instead, which is why the break-even figure moves when you change the commission and not only when you change the cost.

The comparison mode answers the question behind all of this. It takes the same item, the same cost and the same price, and runs it twice: once through a marketplace with its category commission and its per-shipment fees, once through your own store where there is no commission and the only deduction is what your payment provider charges. The gap between the two is what a marketplace sale costs you, per unit, in money.

How to use it

  1. Enter cost and price The cost is what one unit lands in your hands for: the supplier price plus what it took to get it there. The price is what the buyer pays.
  2. Say what the price means In Turkey a shelf price includes VAT, so that is the default. Switch it if your price is net, or turn VAT off if you do not charge it.
  3. Add the deductions The commission of the channel you sell on, the shipping you pay for and the percentage your payment provider keeps. Leave a field empty when it does not apply.
  4. Compare the channels Open the comparison, pick a marketplace and a category, and read the difference per unit between selling there and selling on your own store.

Questions about margins

Is margin the same as markup?

No, and confusing them is the most expensive mistake in pricing. Margin is the profit as a share of your revenue; markup is the profit as a share of your cost. An item bought for 100 and sold for 150 carries a fifty percent markup and a thirty-three percent margin. The tool shows both, because suppliers usually talk in markup and accountants in margin.

Why is the VAT taken out of my revenue?

Because it was never yours. When your price includes VAT, part of what the buyer pays is collected on behalf of the tax office and passed on. Counting it as revenue inflates every margin by the VAT rate. Commission and payment fees, on the other hand, are charged on the full amount the buyer pays, VAT included, which is how the tool applies them.

Do the marketplace rates in the comparison match my contract?

They are the published rates for a category, and they are a starting point, not your agreement. Marketplace commissions depend on the seller level, on category campaigns and on what you negotiated, so the commission field stays editable: replace the rate with the one on your own statement and the comparison recalculates. The table also carries the date it was published and a link to its source.

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Keep the difference

On your own store there is no commission on a sale: the deduction is what your payment provider charges, and the rest stays with you. Opening a store is free and takes a few minutes.

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