What is the difference between margin and markup?

Margin is a share of the price; markup is a share of the cost. At a cost of 100 and a price of 200 the margin is 50% (100÷200) while the markup is 100% (100÷100). They are widely confused, and the same number implies very different prices, so this tool makes you choose explicitly.

Why does it sometimes say the target is unreachable?

When the fee rate plus the target margin reach or exceed 100%, the equation has no finite solution — every extra unit of price is entirely consumed by fees and the margin target. A 15% fee rate with an 85% margin target has no valid price, and the only fix is a lower target or lower fees and costs.

BUSINESS AND COMMERCE · CALCULATED IN YOUR BROWSER

Selling Price Calculator

Work backwards from cost, marketplace fees, and a target margin to the price you need.

Prepare your figuresCosts, fee rates, target margin or markup

Review the estimatePrice / Margin / Markup

Input

Margin (share of price)Markup (share of cost)

Product cost

Other cost

Commission

Payment fee

Fixed fee

Target value

Results

Required price1,104.35

Total fees− 82.83

Net payout1,021.52

Revenue minus spend386.52

Resulting margin35%

Resulting markup62.34%

No currency is assumed — enter every amount in the same one. Results are estimates and are not a marketplace statement or a tax conclusion.

About this tool

You know the cost and the margin you want, but not the price — because the marketplace commission is itself a percentage of the price, so the price appears on both sides. The tool solves the equation directly: price = (cost + fixed fees) ÷ (1 − fee rate − target margin), giving the answer in one step instead of guessing upwards. The target can be a margin on the price or a markup on the cost, and both resulting figures are shown.

How it works

Enter the product cost and any other per-order cost.
Enter the commission %, payment fee %, and fixed charge.
Choose a margin or markup target, enter it, and read the required price.

Assumptions and limits

Percentage fees are charged on the price, so the price appears on both sides of the equation; this is solved algebraically rather than by trial and error.

Privacy

Costs, revenue, and campaign figures are calculated only inside this browser. Nothing is uploaded, stored, or written to the URL or any log.

Frequently asked questions

What is the difference between margin and markup?: Margin is a share of the price; markup is a share of the cost. At a cost of 100 and a price of 200 the margin is 50% (100÷200) while the markup is 100% (100÷100). They are widely confused, and the same number implies very different prices, so this tool makes you choose explicitly.
Why does it sometimes say the target is unreachable?: When the fee rate plus the target margin reach or exceed 100%, the equation has no finite solution — every extra unit of price is entirely consumed by fees and the margin target. A 15% fee rate with an 85% margin target has no valid price, and the only fix is a lower target or lower fees and costs.

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