Know what you actually make on each sale. Enter your cost and selling price and this returns your profit, margin and markup — so you can price products properly instead of guessing.
People mix these up and mis-price as a result. Markup is profit as a percentage of cost (sell at 50 on a 20 cost = 150% markup). Margin is profit as a percentage of the selling price (the same sale = 60% margin). Retail and investors talk in margin; suppliers often quote markup. Always know which one you mean.
Markup is profit divided by cost; margin is profit divided by selling price. The same sale gives a higher markup % than margin % — don't confuse them when pricing.
It varies hugely by industry. Physical products often run 20–50%; software much higher. The key is covering all your costs and leaving room to grow.
It uses the cost you enter. For true profit, include shipping, fees and overhead in your cost figure — or use a tool like Printify where base costs are clear.
This tool is free and runs entirely in your browser. The link above is an affiliate link: we may earn a commission if you sign up, at no extra cost to you, and it never changes our honest take.