Markup vs margin calculator
Turn a markup into a margin (or back), find the price for the margin you want, and see what's left after Etsy, Shopify, Square or Faire fees. Free, no account, no email.
Markup to margin chart
The same price, two ways to say it. Markup compares your profit to your cost; margin compares it to your price. Prices are for an item that costs $3.20 to make.
| Markup | Price is | Margin | Price |
|---|
To turn a markup into a margin: margin = markup ÷ (1 + markup). To turn a margin into a markup: markup = margin ÷ (1 − margin).
Markup vs margin, in plain words
A bar of soap costs you $3.20 to make and you sell it for $8.00. You make $4.80 on it.
Markup is that $4.80 compared to your cost: $4.80 ÷ $3.20 = 150%. You'll also hear it as "2.5 times cost".
Margin is the same $4.80 compared to your price: $4.80 ÷ $8.00 = 60%. It tells you how much of each sale you keep before fees and other costs.
The mix-up that costs makers money
"I want a 50% margin, so I'll add 50% to my cost." On a $3.20 bar that gives $4.80, and a margin of only 33%.
For a 50% margin you need to double your cost: $6.40. Then a marketplace takes its cut, so the margin you keep is smaller again. Choose "The margin I want" above and tick "after fees" to price for that.
Questions makers ask
What's the difference between markup and margin?
Markup is your profit compared to your cost. Margin is your profit compared to your price. An item that costs $3.20 and sells for $8.00 has a 150% markup and a 60% margin. Same price, two ways to say it.
How do I turn a markup into a margin?
Divide the markup by 1 plus the markup. A 100% markup (double your cost) is 1 ÷ 2 = a 50% margin. A 150% markup is 1.5 ÷ 2.5 = 60%.
What markup should I use for handmade products?
There's no single right answer. A common starting point is 2× your cost for a wholesale price and 2× wholesale for retail (4× cost). Check that against your real costs, your selling fees and what similar products sell for near you.
Can a margin be more than 100%?
No. A margin is a share of the price, so it's always under 100%. A markup can be any size: 300% just means the price is 4 times your cost.
Do selling fees change my margin?
Yes. On an $8.00 Etsy sale, Etsy's US fees are about $1.21, so a 60% margin drops to about 45%. Pick where you sell in the calculator to see yours.
Is it free?
Yes. It works right on this page with no account and no email address.