Business

Pricing Calculator

Enter your product cost, markup, and desired margin to calculate selling price and profit.

Calculate product pricing

Enter your cost, markup, and desired margin to calculate selling price and profit for ecommerce offers.

Example descriptions

Markup example

Input

Cost: 20
Markup: 50%
Desired margin: 40%

Output

Markup-based price (50% markup):
- Selling price: $30.00
- Profit: $10.00
- Margin: 33.3%

Margin example

Input

Cost: 20
Markup: 50%
Desired margin: 40%

Output

Margin-based price (40% margin):
- Selling price: $33.33
- Profit: $13.33
- Required markup: 66.7%

How to price products with markup and margin

Markup and margin are related, but they are not the same. Markup is based on cost. Margin is based on selling price.

If your product costs $20 and you sell it for $30, your markup is 50% and your margin is about 33%.

Use markup when you want a simple uplift from cost. Use margin when you care about the profit percentage left after the sale.

Tips for ecommerce pricing

Include packaging, payment fees, and shipping in your real cost when possible.
Do not confuse markup with margin when setting targets.
Test a few price points against competitor offers and perceived value.
Recalculate when supplier costs change.

FAQ

What is the difference between markup and margin?

Markup is profit divided by cost. Margin is profit divided by selling price.

Can I use this for handmade products?

Yes. Enter your full product cost, including materials and an estimate of labor if you track it.

Does this include taxes or shipping?

No. This calculator focuses on cost, markup, margin, and selling price. Add taxes and shipping separately in your store setup.