Profit Margin and Markup Calculator Across Channels
The same product earns a different margin on every channel. Enter your cost once, then each channel's price, fee percentage, fixed fee, shipping and ad spend to compare net profit, margin and markup side by side, plus the price each channel needs for your target margin.
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Questions
- What is the difference between margin and markup?
- Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A product that costs $60 and sells for $100 makes $40 of gross profit: a 40% margin and a 66.7% markup.
- How do I convert markup to margin?
- Margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin). A 50% markup is a 33.3% margin, and a 50% margin needs a 100% markup.
- Which fees should I enter for each channel?
- Use the fees on your own fee statements: the marketplace referral or commission percentage, payment processing (often a percentage plus a fixed amount per order), any other fixed fee per order, and your shipping or fulfillment cost per unit. Add ad spend as a percentage of sales if you advertise on that channel.
- How is the price for a target margin calculated?
- Price = (product cost + fixed fees + shipping) ÷ (1 − fee % − ad % − target margin %). Percentage fees grow with the price, so they sit in the divisor; adding them on top of cost instead leaves you short of your target.
- Why is my net margin lower than my markup suggests?
- Markup is usually quoted on product cost before channel fees, shipping and ads. Net margin counts all of them. The table shows both, so you can see where the money goes on each channel.