Calculators / Markup and pricing

Markup and pricing calculator

Start from what the product costs you. Either add a markup, or tell it the margin you want left after fees and it works out the price.

Your numbers

$
One unit, including inbound shipping.
%
Margin or markup, depending on the choice above.
%
$

Price it at

Selling price
Product cost
Fees
Profit
Margin after fees
Markup on cost

The formulas

With a markup, the fees are not part of the price, so they come out of your margin:

Price = cost × (1 + markup)

With a target margin, the price has to cover the cost, the fixed fee, the percentage fee and the margin all at once. Percentage fees and margin are both slices of the price, so they come off the bottom of the fraction:

Price = (cost + fixed fee) ÷ (1 − margin − fee %)

Worked example

A phone stand costs $12.00. The card processor takes 3% plus 30 cents. You want to keep 40% of the price after fees.

Price(12.00 + 0.30) ÷ (1 − 0.40 − 0.03) = 12.30 ÷ 0.57 = $21.58
Fees21.58 × 0.03 + 0.30 = $0.95
Profit21.58 − 12.00 − 0.95 = $8.63
Margin8.63 ÷ 21.58 = 40.0%

Pricing the same stand with a flat 75% markup gives $21.00. That looks close, but after the same fees the margin is 38.4%, not the 42.9% a 75% markup suggests.

Markup and margin side by side

25% markup20.0% margin
33.3% markup25.0% margin
50% markup33.3% margin
100% markup50.0% margin
150% markup60.0% margin
200% markup66.7% margin

These are before fees. Every fee you pay pulls the margin column down.

Things to watch

Round the price, then recheck

Nobody charges $21.58. If you round to $21.99 or $19.99, put the rounded price into theprofit margin calculator to see what you really keep.

Shipping and ads are not in here

This prices one unit against product cost and payment fees. If you give free shipping or pay for most sales with ads, add those per-order costs to the fixed fee box, or the margin will look better than it is.

Read more

Formula and examples last checked October 9, 2026.

Questions people ask

How do I turn a markup into a margin?

Divide the markup by 1 plus the markup. A 50% markup is 0.5 ÷ 1.5 = 33.3% margin. A 100% markup is 1 ÷ 2 = 50% margin. Going the other way, markup = margin ÷ (1 − margin), so a 40% margin needs a 66.7% markup.

Why does the price jump so much when I add fees?

Percentage fees are taken from the selling price, so raising the price to cover them also raises the fee. The calculator solves for that, which is why the price it gives is higher than cost plus margin plus fee added up separately.

What markup do online stores usually use?

It varies too much by category to give one figure you could rely on. Retail keystone pricing doubles the cost (a 100% markup, 50% margin), and that is a common starting point. Online sellers then have to cover platform fees, payment fees, shipping and ads out of that, so many end up needing more than keystone. Work back from the margin you need with the target-margin mode.

Can my target margin plus fees be 100% or more?

No. If the fees take 10% of the price and you want 90% margin on top, nothing is left to pay for the product. The calculator tells you when the combination is impossible.

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