Free tool · profit margin calculator
Profit margin calculator for online shops
What do you actually keep from each sale? Put in your price and costs, including packaging, postage, payment fees, Webflow’s transaction fee and VAT, and see your real profit, margin and markup. Then find the price you need for the margin you want.
Last checked
PER-ORDER BREAKDOWN
PROFIT
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MARGIN
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MARKUP
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Rates: Stripe UK, PayPal UK, Webflow pricing, GOV.UK VAT rates (20% standard rate). Checked 7 Oct 2026. Fees are applied to the full amount the customer pays. Estimates, not tax advice.
Questions, answered
How do I calculate profit margin on a product?
Profit margin = (net revenue − all costs) ÷ net revenue. Net revenue is the price the customer pays minus VAT (if you’re VAT-registered). Costs include the product, packaging, postage, payment fees and any platform transaction fee.
What’s the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A £10 product sold for £20 (ex VAT, no other costs) has a 50% margin but a 100% markup.
Should I include the shipping I charge?
Yes: add what the customer pays for delivery to revenue and what you pay the courier to costs. Free-shipping thresholds often quietly eat margin, and this shows by how much.
Does Webflow’s 2% fee apply to shipping?
This calculator applies the 2% Ecommerce Standard fee to the full amount the customer pays, which is the cautious assumption. Check your Webflow billing to confirm how it’s applied to your store.