Markup calculator
Free, no sign-up, runs in your browser.
Markup answers “how much did I add on top of what I paid”. It is the number buyers and wholesalers think in, and it is always larger than the margin on the same sale. A 50% margin is a 100% markup. Confusing the two is routine, and it is the reason a product priced for a “40% margin” comes back at 28%.
The formula
Markup = profit ÷ cost. To convert: markup = margin ÷ (1 − margin), and margin = markup ÷ (1 + markup).
A worked example
A $29.99 product that lands at $8.00, sold on Amazon FBA in Home & Kitchen, 10×6×3 inches and 20 ounces packed:
| Revenue kept | $29.99 |
|---|---|
| Total fees | $10.35 |
| Total costs | $10.00 |
| Profit per unit | $9.64 |
| Margin | 32.14% |
| Markup | 96.4% |
| ROI | 96.4% |
What to watch
- Markup has no ceiling. A 300% markup is ordinary; a 300% margin is impossible.
- A supplier quoting “keystone” means a 100% markup, which is a 50% margin — before any marketplace fee touches it.
- Applying a fixed markup across a catalogue produces wildly different margins once per-order fixed fees are included.
- If you only ever quote one of the two, quote margin: it is bounded, comparable across products, and it is what the accounts will show.
The trap
Setting the price by adding the target margin to the cost as if it were a markup. On a 40% target that undercharges by about two-thirds of the margin you wanted.
Questions
What is the difference between margin and markup?
The denominator. Margin divides profit by the selling price; markup divides it by the cost. A unit bought at $10 and sold at $20 has a 50% margin and a 100% markup — identical money, two descriptions.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). A 100% markup is 1 ÷ 2 = 50% margin; a 50% markup is 0.5 ÷ 1.5 = 33.3%.
Which should I use for pricing?
Price from the margin, using the target-price tab, because margin is what fees are deducted against. Use markup only to talk to suppliers, who think in it.
Rates on this page are the published schedules as of 2025-01-15 and are applied by the same code the calculator runs. Marketplaces reprice — confirm against your own seller dashboard before setting a price.