Margin vs. markup — know the difference
Margin is profit as a share of the selling price. Markup is profit as a share of cost. Buy at $12.50 and sell at $24.99: profit is $12.49, margin is 50%, markup is 100%. Mixing them up is the most common pricing mistake in retail — targeting "50% margin" but calculating 50% markup leaves you far thinner than you think. Switch to target-margin mode to get the price that delivers a chosen margin.
Frequently asked questions
What's a good profit margin for an online seller?
After all fees and product costs, many healthy e-commerce businesses net 15–30% per order. Below 10%, returns, damaged stock, and ad-cost swings can erase profit entirely.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 100% markup is a 50% margin; a 50% markup is only a 33% margin.
Does this calculator include marketplace fees?
No — it is pure cost-versus-price maths. Use the marketplace calculators for fees, or enter your net payout as the price here.