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Retail Margin Calculator
Enter the landed unit cost, your selling price and the fees attached to the sale. The calculator returns profit, margin, markup, ROI, break-even price and the price needed for a target margin.
Margin, markup and ROI are three numbers
Margin is profit divided by revenue. Markup is profit divided by cost. ROI is profit divided by the capital tied up in the goods. A product bought for $10 and sold for $20 has a 50% margin, a 100% markup and a 100% ROI — the same sale described three ways, and the source of most pricing arguments.
Marketplace and payment fees belong in the calculation because they are deducted from revenue, not from cost. The calculator treats them as a percentage of the selling price, which is how most platforms charge.
Pricing from a target margin
Working forward from cost gives you a price; working backward from a target margin tells you whether that price is enough. The calculator solves for the price that produces your target margin after variable fees, and shows the break-even price where profit reaches zero.
The gap between those two numbers is your room for advertising, discounts and returns. A price that sits just above break-even leaves no budget for any of them, which is why some apparently profitable listings fail once a promotion runs.
Frequently asked questions
What is a good retail margin?
There is no universal number. It depends on category, return rate, inventory risk and marketing cost. The useful test is whether the margin covers your actual acquisition and operating costs with something left over.
Should unit cost include shipping and duty?
Yes. Use the landed cost — goods, freight, insurance, duty and any non-recoverable import tax. Using the supplier's ex-works price overstates margin on every cross-border sale.
Why do margin and markup differ?
Margin divides profit by revenue; markup divides profit by cost. The same profit is a larger percentage of cost than of revenue, so a 50% margin equals a 100% markup.
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