Convert markup and margin, derive cost or price by mode, and include e-commerce platform fees for realistic net profit and margin planning.
Markup is the percentage added to cost to reach the selling price (based on cost). Margin is the percentage of the selling price that is profit (based on revenue). A 50% markup equals a 33.3% margin. These are often confused but are not interchangeable.
Formula: Selling Price = Cost / (1 - Margin%). For example, if cost is $100 and you want a 25% margin: $100 / (1 - 0.25) = $133.33. Enter cost and target margin in this calculator to get the selling price instantly.
Platform fees (Amazon FBA, Shopify, Etsy, etc.) are subtracted from revenue before profit. A product with a 30% gross margin but a 15% platform fee leaves only 15% net. Use the Platform Fees mode to include these fees and see your true net profit after marketplace deductions.
Typical retail gross margins range from 30-50%. Grocery and electronics tend to be lower (10-25%); apparel and beauty higher (50-80%). SaaS businesses often target 70%+ gross margin. Use the margin benchmarks in this calculator to see how your pricing compares.
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