Reverse Profit Margin Calculator

Most margin calculators start from a price. This one starts from the margin you want and gives you the price, after marketplace fees, shipping and your other costs. Set the target margin under “Targets”.

Results

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Add the product purchase or manufacturing cost.

Estimates only, based on the numbers you enter. Not tax or accounting advice.

Margin ↔ markup converter

Type either value; the other updates.

Margin (profit ÷ price)

Markup (profit ÷ cost)

A 25% margin is the same as a 33.33% markup.

Working backwards from the margin you want

If you know you need a 30% margin to cover returns, advertising and your own salary, the useful question is not “what margin do I make at $24.99?” but “what price gives me 30%?”. That is a reverse margin calculation.

Without fees the formula is simple: price = cost ÷ (1 − margin). Online, part of the price goes to percentage-based fees, so the formula becomes price = fixed costs ÷ (1 − margin − percentage fees). A 30% margin with 15% commission and 3% payment processing leaves only 52% of the price to cover your fixed costs, so the price is the fixed costs divided by 0.52.

Margin and markup at common levels

Mixing up margin and markup is one of the most common pricing mistakes. This table shows the markup you need on cost to reach a given margin (before fees):

Margin and equivalent markup
Margin	Equivalent markup
10%	11.11%
20%	25%
25%	33.33%
30%	42.86%
40%	66.67%
50%	100%

More on the difference in our guide margin vs markup, and why a fixed markup under-prices on marketplaces in why cost-plus pricing fails.

Frequently asked questions

How do I calculate a selling price from a desired margin?

Without percentage fees, divide your cost by one minus the margin: for a 25% margin on a $15 cost, $15 ÷ 0.75 = $20. With percentage-based fees, subtract them too: divide by one minus the margin minus the fee percentages. The calculator above does this including tax, minimum fees and shipping.

Why is a 50% markup not a 50% margin?

Markup is profit divided by cost; margin is profit divided by price. A product that costs $10 and sells for $15 has a $5 profit: a 50% markup but a 33.3% margin. The converter on this page translates between the two.

Can a profit margin be 100%?

Only if the product costs nothing. Margin is a share of the price, so any cost at all keeps it below 100%. Markup, by contrast, has no upper limit.

Which margin is shown in the results: gross or net?

The calculator shows profit after everything you enter: product, shipping, fees, advertising, returns and any monthly costs. If you include all your costs, that is a net margin per unit. Leave out overheads and it is closer to a contribution margin.