---
title: "Margin Calculator (Free Tool)"
description: "Free profit calculator with GO/PAUSE/AVOID verdicts."
lang: en
updated: 2026-11-01
source: "https://www.drilify.com/documentation/margin-calculator"
version: 46a18cc60344
---
# Margin Calculator (Free Tool)

The free Margin Calculator on the [tools page](https://www.drilify.com/tools) is a real profitability engine that calculates your true profit per sale. Unlike simple calculators, it factors in product cost, shipping, ads, platform fees, and returns to give you a clear GO, PAUSE, or AVOID verdict - no account required.

## What It Calculates

- **Net profit per sale**, Your actual take-home after all costs.
- **Net margin percentage**, Profit as a percentage of selling price.
- **Gross profit & margin**, Revenue minus cost of goods sold.
- **Markup multiple**, How many times your cost the selling price is.
- **GO / PAUSE / AVOID verdict**, A clear recommendation based on your margins.

## How to Use It

:::steps
### Open the tools page
Visit [drilify.com/tools](https://www.drilify.com/tools) and find the Margin Calculator section.

### Enter your costs
Fill in the selling price, product cost, shipping cost, ad cost per sale, and platform fees. Your currency is auto-detected from your location.

### Click Calculate Profit
The calculator processes your inputs and shows a verdict banner with your net profit, margin, and markup.

### Review the results
See your gross profit, gross margin, total deductions, and price excluding VAT. A premium report with break-even CPA, ROAS, and launch cash requirements is shown but locked until you sign up.

### Explore Deep Analysis
Click the Deep Analysis button to preview advanced features like platform-specific presets, ad cost models, return rate analysis, and launch cash requirements - all unlocked with a free account.
:::

## Understanding the Verdict

- **GO** (green), The product is profitable with healthy margins. Proceed with confidence.
- **PAUSE** (amber), Margins are thin. Proceed with caution or find ways to reduce costs.
- **AVOID** (red), The product loses money. Look for a different product or supplier.

:::callout info Free attempts
You get 5 free calculations. After that, sign up for a free account to get unlimited calculations plus the full premium report with break-even CPA, ad headroom, and launch cash requirements.
:::

## Premium Report (Unlocked with Account)

When you create a free account, you unlock the full profitability report which includes:

- Break-even CPA - the maximum you can spend per ad-driven sale
- Break-even ROAS - the minimum return on ad spend to stay profitable
- Ad headroom percentage - how much more ad spend you can absorb
- Launch cash requirement - total capital needed (inventory + ad budget)
- Full fee breakdown - itemized commission, fulfillment, payment & return costs
- Warnings - alerts for thin margins, high return rates, or unsustainable ad costs