Articles
Profit margin shows what percentage of revenue remains as profit after costs.
Example one: A small business sells a product for $80 and total cost is $48. Profit is $32 and profit margin is 40%.
Example two: A service business charges $1,200 for a project and direct labor plus tools cost $720. Profit is $480 and margin is 40%.
Example three: An ecommerce order brings in $65 and costs $44 after product cost, shipping, fees, and ads. Profit is $21 and margin is 32.31%.
Use the Profit Margin Calculator at /tools/profit-margin-calculator, then compare with the Ecommerce Profit Calculator at /tools/ecommerce-profit-calculator and Product Pricing Calculator at /tools/product-pricing-calculator.
Profit margin examples for small businesses
Use simple profit margin examples to understand revenue, cost, profit, and margin percentage.
Example one: A small business sells a product for $80 and total cost is $48. Profit is $32 and profit margin is 40%.
Example two: A service business charges $1,200 for a project and direct labor plus tools cost $720. Profit is $480 and margin is 40%.
Example three: An ecommerce order brings in $65 and costs $44 after product cost, shipping, fees, and ads. Profit is $21 and margin is 32.31%.
Use the Profit Margin Calculator at /tools/profit-margin-calculator, then compare with the Ecommerce Profit Calculator at /tools/ecommerce-profit-calculator and Product Pricing Calculator at /tools/product-pricing-calculator.
Profit Margin
Small Business
pricing
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Useful tools
Product Pricing Calculator
Calculate a product selling price from costs and target margin.
Ecommerce Profit Calculator
Calculate profit per order after product cost, shipping, fees, and ad cost.
Profit Margin Calculator
Calculate profit, cost, and margin for ecommerce, Shopify, Amazon, Etsy, or independent store products.
Markup Calculator
Use this free markup calculator to compare cost, selling price, markup, profit, and margin before publishing a product price.
Free Shipping Threshold Calculator
Calculate a free shipping threshold that covers shipping cost and protects margin.
Amazon FBA Profit Calculator
Estimate Amazon FBA profit per unit from selling price, product cost, FBA fee, referral fee, and inbound shipping.