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AREM Labs

EN TR

Profit Margin Calculator

Work out net profit, margin and ROI from cost, sale price, VAT, commission and shipping, in your choice of currency. Everything is calculated in your browser.

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VAT rate

Net profit

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Profit margin
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ROI
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VAT
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Commission amount
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Net revenue excluding VAT
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Commission is taken on the sale price you enter; profit is net revenue excluding VAT minus cost, commission, shipping and other costs. Margin = net profit ÷ net revenue, ROI = net profit ÷ cost.

Tips

  • Choose your currency — TRY, USD, EUR or GBP — before you read the figures.
  • Enter the exact commission rate you negotiated rather than a rounded estimate.
  • Margin divides net profit by net revenue; ROI divides net profit by the cost you paid.

How to use it

  1. 1 Pick the currency you trade in: TRY, USD, EUR or GBP.
  2. 2 Enter your unit purchase cost excluding value-added tax.
  3. 3 Input your final selling price including tax along with the applicable tax rate.
  4. 4 Add the marketplace commission percentage, shipping fee, and any extra packaging costs.

What you should know

E-commerce pricing requires accounting for every deduction between gross revenue and actual profit. Selling on platforms like Amazon, eBay, or regional marketplaces such as Trendyol involves layered deductions including percentage commissions, commission taxes, outbound shipping, return reserve allowances, and packaging materials. Ignoring these overhead items can cause seemingly profitable items to generate net losses. Calculating net profit margin helps you determine whether a listing generates sufficient cash flow to cover marketing and operational overhead while maintaining a sustainable return on investment across multiple sales channels.

This calculator computes net profit, profit margin percentage, and return on investment in real time as you adjust inputs. Pick your currency — Turkish lira, US dollar, euro or pound sterling — then enter your wholesale cost excluding value-added tax, target retail price, applicable tax rate, marketplace commission percentage, shipping expenses, and extra per-unit packaging or handling fees. The tool instantly isolates net revenue after tax and subtracts all variable fees to reveal your actual take-home margin. All calculations execute entirely in your browser using client-side JavaScript, meaning your sensitive financial figures and unit margins remain private and are never sent to external servers.

Frequently asked questions

What is the difference between profit margin and markup?

Profit margin measures net profit as a percentage of the selling price, whereas markup measures profit as a percentage of the purchase cost. For example, buying an item for $100 and selling it for $150 gives a 50% markup but a 33.3% profit margin.

Where can I find my marketplace commission rate?

Marketplace platforms such as Trendyol, Hepsiburada, Amazon, and eBay publish category-specific commission schedules inside their seller portals. Check your seller dashboard for the latest contract rates and category promotions before calculating.

How should I account for return costs in the calculation?

Multiply your expected return rate percentage by the average two-way shipping and repackaging cost per return. Add this resulting average amount into the other expenses field to protect your net margin.

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