Profit margin and markup calculator for online sellers

Check your margin, find the price for a margin or markup you want, and see the difference between the two.

Illustration of rising bars, a price tag and a markup badge
Margin and markup from cost and price
Price for a target margin
Price for a target markup

Margin and markup are not the same

Markup is profit as a percentage of what the item cost you. Margin is profit as a percentage of what you sell it for. The same sale gives different percentages. If an item costs 80 and sells for 100, the profit is 20, the markup is 20 ÷ 80 = 25%, and the margin is 20 ÷ 100 = 20%. Mixing them up is one of the most common pricing mistakes, because a 50% markup is only a 33.3% margin.

How to use this tool

  1. To check a price you already have, use the first box: enter the cost and the selling price.
  2. To work out a price that gives a margin you want, use the second box. Price = cost ÷ (1 − margin ÷ 100).
  3. To price from a markup, use the third box. Price = cost × (1 + markup ÷ 100).
  4. Read the working shown under each result, so you can check it.

Worked examples

QuestionAnswer
Cost 80, price 100Profit 20, margin 20%, markup 25%
Cost 70, you want a 30% marginPrice 70 ÷ 0.70 = 100, profit 30
Cost 80, you want a 50% markupPrice 80 × 1.5 = 120, profit 40, margin 33.33%

Important limits

Troubleshooting

What you seeLikely reasonWhat to try
“Enter the cost and the selling price”A box is emptyFill in both boxes
Loss instead of profitThe price is lower than the costCheck the numbers or raise the price
Margin message about 100Margin must be below 100%Enter a lower margin

Notice

This is a general-purpose calculator for information only. It is not financial, tax, accounting or legal advice. Prices, rates, fees and rules differ between sellers, platforms and countries.

Practical scenarios

Getting realistic figures

For a more honest result, put everything you pay for one sale into the cost box: the item, inbound shipping, packaging, and a share of fees. For a full breakdown with platform fees, advertising and returns, use the Marketplace Fee and Net Profit Calculator. Our article on margin versus markup explains the conversion between the two with tables.

Tips

Frequently asked questions

What is the difference between margin and markup?

Markup is profit divided by cost. Margin is profit divided by the selling price, so it is always the smaller number.

What margin should I aim for?

That depends on your costs and market. This tool only does the arithmetic.

Does it include shipping and fees?

Only if you add them to the cost box.

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