How to use
Choose whether to find margin and markup from an existing price, find a price from a target margin, or find a price from a target markup. Enter the cost for one consistent unit: one product, order or unit of work. Then enter the selling price or target percentage for the selected mode.
Use one currency throughout. Currency selection changes labels without converting values. Expand the details when you need to inspect the difference between your target and the percentage achieved by a whole-cent price.
Calculation method
Profit per unit = selling price − cost. Margin = profit / selling price × 100. Markup = profit / cost × 100. A target margin gives price = cost / (1 − margin / 100); target markup gives price = cost × (1 + markup / 100).
In target-price modes the proposed price rounds up to the next cent. Profit and achieved percentages are then calculated from that proposed price, so the achieved percentage can be higher than the target. The tool retains the exact internal price relationship rather than using rounded percentages for its next operation.
Worked example
Cost 60 and price 100 give profit 40, margin 40% and markup 66.6667%. A 50% markup on the same cost gives price 90 and margin 33.3333%. These targets are not interchangeable. With cost 1 and a 33% margin target, the theoretical price is about 1.492537; the proposed 1.50 price achieves a 33.3333% margin.
Read the result in context
This is a per-unit calculation using your entered cost, before any omitted expenses. It is not automatically net business profit. A zero selling price makes margin undefined; zero cost makes markup undefined. A loss is a valid result. Fees, delivery, tax and overhead are included only to the extent you incorporate them into your inputs.
For order-level marketplace charges use the Etsy fee calculator. To connect unit contribution with operating costs, use the break-even calculator.
For the measurement and planning details, read margin vs markup: choosing the right pricing percentage.