Margin Calculator
Calculate your gross margin, markup rate and check product profitability in seconds.
Instant Result
Markup rate
% of selling price
Margin rate
% of cost price
Gross margin (unit profit) Active promo
Final price breakdown
Total profit ( units)
Ideal selling price
To reach your target markup of % excluding platform commission :
Good to know :
This answer helps you understand a topic or make an estimate, but it is not a substitute for professional advice. For any important decision regarding your health, finances, rights, safety or administrative procedures, please consult an official source or a qualified specialist.
Go deeper
Margin, markup, margin rate: stop mixing them up
These are the three key indicators for any retailer and e-commerce seller. Gross margin is the absolute value in euros (Selling price excl. VAT - Cost price excl. VAT). The markup rate expresses this margin as a percentage of the selling price; it's the king indicator in retail. The margin rate expresses this margin as a percentage of your cost price. Our tool computes all three in real time so you avoid classic mistakes.
VAT, marketplace fees, promos: real-world conditions
Margin is always computed excluding VAT. The customer pays the VAT, but you return it to the state. If you sell on Amazon, Etsy, Stripe or eBay, the platform fee is usually taken from the final amount including VAT. And a -20% promo eats directly into your unit margin. This tool factors in all of these so the result matches a seller's real life.
Psychological pricing, suggested price and sharing
The tool automatically suggests a target price to hit your markup goal, plus a psychological price ending in .90 to boost conversion. A shareable link is generated for every calculation: send your simulation to your partner or accountant in one click, no signup, no server storage.
FAQ
What is a good markup rate?
It depends on your industry. In mass retail, it's usually around 20 to 30 %. In apparel or luxury, generally between 50 % and 70 %. In digital (SaaS, infoproducts), it can exceed 80 %. The key is that it covers your fixed costs (rent, salaries, advertising) and leaves a net profit at year end.
Why can't my markup rate exceed 100 %?
Mathematically, the markup rate is the share of margin inside your selling price. If you buy a product for 0 € and sell it for 10 €, your margin is 10 €, i.e. 100 % of what you collected. You can never earn more than the total collected. The margin rate, on the other hand, has no limit and can easily exceed 100 %.
Gross margin vs net margin: what's the difference?
Our tool computes gross margin (Sale - Purchase - Direct costs - Fees). Net margin is what truly stays in your pocket at year end after deducting all company expenses: corporate taxes, electricity, software subscriptions, accountant, salaries, etc.
How is the marketplace fee applied?
The fee is applied to the final selling price collected (incl. or excl. VAT depending on your selected base). It's then deducted from your gross margin as a variable post-sale cost. The suggested price doesn't include this fee: it's computed on your raw cost of goods to reach your markup target.
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