Profit margin calculator

Free, no sign-up: work out profit, margin, markup and ROI on any item after marketplace fees and postage, or enter the margin you want and get the price to list at.

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Item cost Selling price Markup % Target margin %

Marketplace fee % Fixed fee per sale Postage & packaging you pay

Selling price–

Profit–

Margin–

Markup–

ROI–

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Margin vs markup

Margin is profit as a share of the selling price: buy for £10, sell for £25, profit £15, margin 60%. Markup is profit as a share of what you paid: the same sale is a 150% markup. Margin can never reach 100%; markup can go as high as you like. Resellers usually think in markup ("I double my money") and accountants in margin — this calculator shows both, after fees and postage, which is the number that actually lands in your account.

Questions

How do I calculate profit margin?

Profit margin = (selling price − all costs) ÷ selling price × 100. All costs means what you paid for the item plus marketplace fees and the postage you pay. Sell for £30 an item that cost £8, with £4 fees and £3 postage: profit £15, margin 50%.

How do I calculate markup?

Markup = (selling price − cost) ÷ cost × 100. An item bought for £10 and sold for £25 has a 150% markup. To go the other way, selling price = cost × (1 + markup ÷ 100).

What is a good profit margin for reselling?

Most full-time clothing resellers aim for a margin of 50% or more after fees and postage on sourced stock, because a large share of items sell slowly or get discounted. Low-cost thrifted items can run far higher; new-with-tags retail arbitrage often runs 20–35%.

What is ROI?

Return on investment is profit ÷ what you spent on the item. It answers "for every £1 I spend on stock, how much comes back as profit?" — the number to compare sourcing trips by.

Profit margin calculator

Margin vs markup

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