How the margin calculator works
A selling price based only on product cost can underestimate the effect of shipping, payment fees, marketplace fees and other reserves. This calculator works backward from the margin you want to keep.
Margin vs. markup
Margin is profit divided by selling price. Markup is profit compared with your fixed cost. They describe profitability from different starting points.
What should you include?
Include costs you actually bear per sale: product or material cost, packaging, seller-paid shipping, payment or marketplace fees, advertising allowance and expected returns where relevant.
Margin Calculator FAQ
What is a 30% profit margin?
A 30% margin means profit equals 30% of the selling price after the costs included in your calculation.
Why is markup higher than margin?
Markup compares profit with cost, while margin compares profit with selling price. Because the denominators are different, the percentages are not interchangeable.
Should marketplace fees be included?
Yes. Include percentage-based selling or payment fees when they apply to each sale, and include fixed per-sale expenses with your other costs.