Margin calculator
Margin is what is left from the selling price after the marketplace fee, the cost of the item, shipping and other costs. The fee is price × fee rate, the payout is price − fee, and the margin rate is margin ÷ price. If your prices include VAT, turn on the VAT option to subtract the VAT you owe.
Worked example
- Cost 10.00, price 20.00, shipping 3.00, fee 10% → fee 2.00, payout 18.00, margin 5.00, margin rate 25%.
Questions people ask
Is margin the same as markup?
No. Margin here is profit ÷ selling price. Markup is profit ÷ cost, so it gives a bigger number for the same sale.
What does the VAT option subtract?
It treats the price and the cost as VAT-inclusive and subtracts the VAT in the price minus the VAT in the cost. VAT on fees and shipping is not deducted, so the result can be a little low.