How the Profit Margin Calculator works
Margin tells you how much of each dollar of sales you keep. Amazon's fees typically take 30–45% of the price, so a product with a 15% net margin is common and a 30%+ net margin is excellent.
Formula
- Margin = Net profit ÷ Revenue × 100
- Markup = Net profit ÷ Total costs × 100
Example
$8.50 profit on a $34.99 sale is a 24.3% margin.
Selling price (or total revenue): 34.99Net profit: 8.5
Frequently asked questions
Margin vs ROI?
Margin uses price as the base; ROI uses your cost. A product can have a low margin but a high ROI when the product is cheap relative to the price.