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Margin & Markup Calculator

Start from your landed cost per unit and see your true margin, the price you need for a target margin, and how many units it takes to cover fixed costs.

Calculate it

Your margin

—
  • Markup on cost—
  • Profit per unit (after fees)—
  • Price for target margin—
  • Break-even quantity—
Find a lower unit cost

Margin vs markup — the difference that costs money

Profit = Price × (1 − fees %) − Cost
Margin % = Profit ÷ Price × 100
Markup % = Profit ÷ Cost × 100
Price for target margin = Cost ÷ ((1 − target %) × (1 − fees %))
Break-even units = Fixed costs ÷ Profit per unit

A 50% markup is only a 33% margin. Confusing the two is one of the most common pricing errors in new import businesses — and it is why we show both side by side.

MarkupEquivalent margin
25%20%
50%33.3%
100%50%
150%60%
200%66.7%

Frequently asked questions

What margin should an importer aim for?

It depends on the channel. Wholesale distributors often work on thinner margins with volume; brands selling direct or through marketplaces usually need much higher gross margins to absorb advertising, returns and fees. Model your full cost stack before deciding.

Should landed cost include import VAT?

If you are VAT/GST-registered and can reclaim it, exclude it. Otherwise include it — it is a real cost.

Why include fees as a percentage?

Marketplace referral fees, payment processing and sales commissions scale with price, so they must come off revenue before you calculate margin.

Landed cost · Currency converter · Start an import-export business