Optimize Your Product Pricing
Setting the right price is crucial for any business. Our Margin Calculator helps you determine the optimal selling price to achieve your desired profit margin. Whether you are in ecommerce, retail, or wholesale, you can instantly convert between cost, markup, and gross margin.
You can toggle between different calculation modes to find your revenue based on a target margin, or calculate your realized margin based on a specific sales price.
Margin vs. Markup Conversion Table
A common mistake in pricing is confusing margin and markup. Use this quick reference table to see how they compare.
| Markup % (Added to Cost) | Gross Margin % (of Revenue) |
|---|---|
| 10% | 9.09% |
| 25% | 20.00% |
| 50% | 33.33% |
| 100% | 50.00% |
| 200% | 66.67% |
Pricing Strategy Tips
- Understand your baseline: Always know your exact Cost of Goods Sold (COGS) including shipping, packaging, and raw materials before setting a price.
- Use Margin for P&L: Use gross margin when forecasting your profit and loss statement, as it scales directly with revenue.
- Use Markup for quick pricing: Markup is easier to calculate on the fly when you are purchasing inventory (e.g. "I'll double the cost to set the price").