Profit Margin & Markup Calculator
Work out profit, margin and markup from your cost and price, or find the price that gives the margin you want. Free, instant, and nothing you type leaves your browser.
Your numbers
Result
Price for a target margin
Runs in your browser; nothing you enter is sent or stored. Margin and markup are not the same: margin is profit divided by price, markup is profit divided by cost.
Margin vs markup
Margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. They use the same profit but divide by different numbers, so they are never equal unless profit is zero. An item that costs 60 and sells for 100 has a profit of 40, a margin of 40% and a markup of 66.7%.
Mixing the two up is a common pricing mistake. If you add a 40% markup to a cost of 60 you charge 84, which is a margin of only 28.6%, not 40%.
Finding the price for a target margin
To reach a target margin, divide the cost by 1 minus the margin as a decimal: price = cost ÷ (1 − margin). For a cost of 60 and a 40% target, price = 60 ÷ 0.6 = 100. A margin of 100% or more is impossible, because the price would have to be infinite.
What this does not include
The cost field is whatever you enter. Add shipping, fees and your share of overhead to it if you want a true margin. For marketplace fees and shipping, use the Marketplace Fee Calculator. For ad spend, use the ROAS Calculator.
Next steps
Once your price is set, our Product Description Generator can draft the listing text, and How to Write a Product Description That Converts covers the method.
Frequently asked questions
What is a good profit margin?
It depends on your costs, your category and how much you spend on ads. A good margin is one that still leaves profit after every cost, including advertising. Use your own costs rather than a general benchmark.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A markup of 50% (0.5) gives a margin of 0.5 ÷ 1.5 = 33.3%. To go back, markup = margin ÷ (1 − margin).
Should I price by margin or markup?
Margin is easier to compare with revenue and fees because it is a share of the price. Markup is easier when you start from a cost. The calculator shows both so you can check either method.
Is my data saved?
No. The calculator runs in your browser and nothing you type is sent to our servers.