Enter your product cost and target margin or markup on the left, then tap Calculate Selling Price to see your recommended price, profit, and margin breakdown.
Use the Advanced Options to factor in platform fees, shipping, and payment processing for a more accurate net profit.
There are two main ways to price a product: using markup or using margin. Both start from your total cost.
| Method | Formula | Example ($50 cost) |
|---|---|---|
| Markup 40% | Cost × 1.40 | $70.00 |
| Markup 50% | Cost × 1.50 | $75.00 |
| Margin 30% | Cost ÷ 0.70 | $71.43 |
| Margin 40% | Cost ÷ 0.60 | $83.33 |
| Fixed +$20 | Cost + $20 | $70.00 |
Markup and margin are not the same. A 50% markup gives a 33% margin. A 50% margin requires a 100% markup. If you're buying in bulk, calculate your unit price first so your cost figure is accurate before applying any markup.
| Industry | Typical Gross Margin |
|---|---|
| Software / SaaS | 60–80% |
| Digital Products | 70–90% |
| Handmade / Crafts | 40–70% |
| Clothing / Apparel | 40–60% |
| Electronics Retail | 15–35% |
| Food & Beverage | 30–60% |
| Wholesale | 10–30% |
| Online Marketplace | 30–50% |
Gross margin covers only cost of goods. Net profit margin is lower after fixed costs, fees, and taxes.
Markup is the amount added on top of your cost. If your cost is $10 and you add 50%, your price is $15. The $5 profit is 50% of cost.
Margin is profit as a percentage of the selling price. On that same $15 item, the $5 profit ÷ $15 price = 33.3% margin.
Both describe the same transaction but from different angles. Use markup when setting prices. Use margin when tracking profitability in financial reports.
If someone tells you their target is a "40% margin," never use 40% markup — it will set a lower retail price than they need.
When selling online, your real cost is higher than just the product. Factor in all of these before deciding your price:
Add all these to your base cost before applying your margin target. Use the Advanced Options above to include fees automatically.
How much to charge at each markup level. Formula: Selling Price = Cost × (1 + Markup%).
| Cost Price | 10% markup | 25% markup | 50% markup | 75% markup | 100% markup | 200% markup |
|---|
Markup is always calculated on cost. Currency shown as $.
The same profit looks different depending on whether you measure from cost (markup) or price (margin).
| Markup % | Equivalent Margin % | Price on $10 cost | Price on $25 cost | Price on $50 cost | Price on $100 cost |
|---|
Margin = Markup ÷ (1 + Markup). The same profit looks like a bigger % when measured as markup vs margin.
What to charge at each margin level. Formula: Price = Cost ÷ (1 − Margin%).
| Cost Price | 20% margin | 30% margin | 40% margin | 50% margin | 60% margin | 70% margin |
|---|
A 50% margin requires a 100% markup. A 70% margin requires a 233% markup. Margin can never reach 100%. Currency: $.
Effective profit after common marketplace selling fees on a 50% markup price.
| Product Cost | Price (50% MU) | No Fee | 5% Fee (Etsy) | 10% Fee | 13% Fee (eBay) | 15% Fee (Amazon) |
|---|
Net profit = (Price − Fee) − Cost. Fees reduce your margin significantly. Factor them in before setting your price. Currency: $.
How small per-unit profit adds up when you sell more. Based on a 40% markup on each cost tier.
| Cost/Unit | Price (40% MU) | Profit/Unit | ×10 units | ×50 units | ×100 units | ×500 units |
|---|
Total profit scales linearly with volume. Increasing your selling price even slightly has a compounding effect at high volumes. Currency: $.
Use these benchmarks to check if your pricing is in the right range for your market.
| Industry / Product Type | Gross Margin Range | Typical Markup | Key Cost Driver | Notes |
|---|---|---|---|---|
| 🖥️ Software / SaaS | 60–80% | 150–400% | Development & hosting | High margins, low variable cost |
| 🎨 Digital Products | 70–90% | 233–900% | Creation time | Near-zero reproduction cost |
| 🧶 Handmade / Crafts | 40–70% | 67–233% | Materials + labor | Must include maker's hourly rate |
| 👗 Clothing / Apparel | 40–60% | 67–150% | Manufacturing, returns | High return rates reduce net margin |
| 📱 Electronics Retail | 15–35% | 18–54% | Product cost, logistics | Low margin, high volume business |
| 🍕 Food & Beverage | 30–60% | 43–150% | Ingredients, waste | Varies hugely by product type |
| 💄 Beauty / Cosmetics | 50–70% | 100–233% | Packaging, ingredients | Brand premium drives price |
| 🏋️ Health Supplements | 50–80% | 100–400% | Raw ingredients | Regulatory costs can be high |
| 📦 Wholesale Distribution | 10–30% | 11–43% | Freight, warehousing | Volume is the profit lever |
| 🛒 Online Marketplace | 30–50% | 43–100% | Platform & ad spend | Fees eat 10–20% of revenue |
| 🏠 Home Décor / Furniture | 40–60% | 67–150% | Materials, shipping | Fragile = higher return costs |
| 📚 Books / Publishing | 30–50% | 43–100% | Print, distribution | eBooks have higher margins |
Gross margin covers only cost of goods sold (COGS). Net margin is lower after fixed costs, tax, and fees. Use as a guide only — actual margins vary.