Profit margin
Margin is your profit as a share of the selling price. An item bought for £12 and sold for £30 makes £18 profit, a 60% margin: 60p of every pound the buyer pays is yours.
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Profit margin and markup calculator
Enter what an item cost you and what it sells for to see your profit, margin and markup. Or set the margin you want and get the price to charge.
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Profit
£18.00
Margin 60%
Markup 150%
Selling price
£30.00
Prices for your cost
| Margin | Markup | Price |
|---|---|---|
| 10% | 11.1% | £13.33 |
| 20% | 25% | £15.00 |
| 25% | 33.3% | £16.00 |
| 30% | 42.9% | £17.14 |
| 40% | 66.7% | £20.00 |
| 50% | 100% | £24.00 |
| 60% | 150% | £30.00 |
| 70% | 233.3% | £40.00 |
Guide
Margin and markup, explained
Markup
Markup is your profit as a share of what the item cost you. The same £18 profit on a £12 item is a 150% markup. Markup is always the bigger number, which is why the two get mixed up.
Pricing for a target margin
To reach a margin, divide the cost by one minus the margin. For a 40% margin on a £12 item: £12 ÷ 0.6 = £20. Adding 40% to the cost (£16.80) would only give you a 28.6% margin.
Use the margin you really make
Marketplace fees, payment fees, postage, packaging and returns all come out of the price, so the margin on the label is rarely the margin in the bank. Take them off the price first, or let ProfitClerk do it for every order.
How ProfitClerk works this out for you
- Margin, ROI and days to sell explainedWhat profit margin, ROI and days to sell mean in ProfitClerk, how each is worked out from your eBay sales, and where to see them for an order or a product.
- How your profit on each sale is calculatedSee how ProfitClerk turns an eBay sale into profit: what the buyer paid, less eBay fees, postage label, packaging, item cost, return postage and refunds.
- Sales with no item cost and how to fix themA sale shows No item cost when ProfitClerk cannot find what the item cost you. Find these sales, add the cost one by one or in bulk, and stop it happening.
Questions
What is a good profit margin for a reseller?
It depends on how fast you sell and how much work each item takes. Many resellers aim for 30% to 60% after fees on second-hand goods, and accept less on fast sellers. What matters is the margin after fees, postage and returns.
How do I work out profit margin?
Profit margin = (selling price − cost) ÷ selling price × 100. Sold for £30 and cost £12: (30 − 12) ÷ 30 × 100 = 60%.
How do I turn a markup into a margin?
Margin = markup ÷ (100 + markup) × 100. A 100% markup is a 50% margin; a 50% markup is a 33.3% margin.
Is gross margin the same as profit margin?
Gross margin takes only the cost of the goods off the price. Net margin also takes off fees, postage and running costs. This calculator gives the gross figure for the cost you enter, so include fees in the cost for a net figure.
Know your real margin on every sale
A margin worked out by hand leaves fees, postage and refunds out. ProfitClerk pulls them in from your orders and shows the margin you actually made.
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