Product Margin Calculator
Understand the profit margin and markup on any product at a glance. See how marketplace fees change your effective margin, and find the break-even price so you always know your floor.
Your numbers stay in your browser. Handmade Price Calculator does not upload or store your product costs.
Net profit
$16.68
This calculator provides estimates only. Fees, taxes, and marketplace rules may change. Always verify current platform fees and consult a qualified professional for business, tax, or accounting advice.
When to use this calculator
Common scenarios where this tool helps
You want to know your gross and net margin on an existing product.
You're benchmarking margin across your product catalog.
You're reporting on profitability and need a quick margin check per SKU.
Margin vs. markup: which to use?
Both tell you about profitability, but from different angles. Margin is what percentage of your revenue is profit. Markup is how much you added on top of your cost. A 100% markup gives you a 50% margin — same product, same price, different framing.
For Etsy and marketplace sellers, margin is more useful because fees and platform costs are a percentage of your selling price — they fit naturally into a margin calculation. Use markup when comparing to wholesale pricing, where buyers often think in terms of cost multiples.
What margin should you target?
There is no single right margin, but there are useful benchmarks. Most handmade sellers aim for a 30–50% gross margin before marketplace fees. Low-material, high-labor items like knitwear or custom art often need the higher end because your time dominates the cost. Higher-material, faster items like poured candles or print-on-demand can work at the lower end because you make more of them per hour.
The critical detail is that gross margin is not what you keep. A product with a 35% gross margin on Etsy, after roughly 10% in fees, nets closer to a 25% effective margin. If your gross margin starts below 20%, fees alone can erase most of it — and a single return or discount can push the item into a loss. That thin cushion is why the 20% floor matters.
Margin is a health check, not a pricing method on its own. Once you know your margin per product, set prices deliberately with the complete handmade pricing guide, and see exactly how platform fees eat into it in every Etsy fee explained.
Margin and markup: a quick reference
The two numbers describe the same sale from different angles, and mixing them up is a common pricing mistake. Take a product that costs $10 and sells for $20. Your markup is 100% — you doubled the cost — but your margin is 50%, because profit is half the selling price. Markup is measured against cost; margin is measured against price. Margin can never exceed 100%, while markup can climb far higher.
For handmade and marketplace sellers, margin is usually the more useful lens, because platform fees are charged as a percentage of the selling price — they fit naturally into a margin calculation. Markup is handy when you think in cost multiples, such as pricing at 2× or 3× your materials, but it hides how thin your real profit becomes once fees come out.
Use margin to judge a product's health, then set the actual price deliberately with the complete handmade pricing guide.
Frequently asked questions
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. If your cost is $10 and you sell for $15, your markup is 50% but your margin is 33%. Both are useful; margin is more common in retail and marketplace contexts.
Many experienced sellers target 30–50% gross margin. Below 20%, there is very little room for discounts, returns, or restocking surprises. Keep in mind that gross margin does not include marketplace fees, so your net margin after fees is lower.
Fees come out of your revenue before you see it. If your gross margin is 35% and Etsy takes 10% in fees, your effective margin is closer to 25%. The calculator shows margin before and after estimated fees so you can plan accurately.
The break-even price is the minimum you can charge to cover all costs without making any profit. Selling below this price means you lose money on every sale. It is useful to know so you can make informed decisions about discounts, sales, and free shipping offers.