Calculate Your Product Profit
What Is Product Profit Margin?
Product profit margin shows how much of your selling price remains as profit after the costs included in the calculation.
Example
If a product sells for PKR 2,500 and your total cost per order is PKR 1,550:
2,500 − 1,550 = PKR 950 Profit
Your profit margin would be 38%.
Profit Margin vs Markup
Profit margin compares profit with the selling price, while markup compares profit with the product cost. These are different measurements and should not be treated as the same.
Frequently Asked Questions
Include the costs that directly affect each order, such as product cost, shipping, payment fees, advertising and other per-order expenses.
A higher margin generally gives you more room for advertising, discounts and unexpected costs, but sales volume and customer acquisition costs also matter.
Yes. Enter the selling price and your estimated per-order costs to estimate product-level profitability.