Your numbers
USD
What you pay to buy or make one item.
Extra costs per item
USD
USD
USD
USD
USD
Rent, salaries, electricity… (optional)

What if…

Profit after a discount
DiscountNew priceProfitMargin
−5%$0.00$0.00–
−10%$0.00$0.00–
−15%$0.00$0.00–
−20%$0.00$0.00–
−25%$0.00$0.00–
Break-even–Add your monthly fixed costs to see how many items cover them.
Sales of 1$0.00Cost $0.00, profit $0.00.

Margin and markup, in simple words

Margin

How much of the selling price you keep as profit. It answers: "Of every 100 I take, how much is mine?"

Markup

How much you add on top of what the item cost you. It answers: "I bought it for 100, how much do I add?"

Example: you buy a phone case for 80 and sell it for 100. Profit is 20. Margin = 20 ÷ 100 = 20%. Markup = 20 ÷ 80 = 25%.

  • Margin10%Markup11.1%
  • Margin15%Markup17.6%
  • Margin20%Markup25%
  • Margin25%Markup33.3%
  • Margin30%Markup42.9%
  • Margin40%Markup66.7%
  • Margin50%Markup100%
Step by step

How to use

01

Choose what you know: "I know my price" to see your profit, "Target margin" or "Add markup" to find the price you should charge.

02

Pick your currency and enter what one item costs you. Open "Extra costs" to add transport, tax or fees per item.

03

Enter your selling price, or the margin or markup you want. The results update as you type.

04

Pick a shop price (exact, rounded up, or ending in 9), check how discounts change your profit, and add a quantity or your monthly fixed costs to see totals and break-even.

05

Tap "Copy results" to share them, for example with your partner or on WhatsApp.

Questions

Frequently asked questions

What is the difference between margin and markup?
Both measure the same profit, from different sides. Margin is profit as a share of the selling price. Markup is profit as a share of your cost. If an item costs 80 and you sell it for 100, the profit is 20: that is a 20% margin (20 of 100) but a 25% markup (20 on top of 80). Margin is always smaller than markup.
How do I calculate the selling price from the margin I want?
Divide your total cost by (1 − margin). For a 25% margin on a cost of 60: 60 ÷ 0.75 = 80. Adding 25% to the cost (60 × 1.25 = 75) gives only a 20% margin, which is a common mistake. Choose "Target margin" and the calculator does it for you.
Should I include transport, tax and fees in the cost?
Yes. Everything you pay to get one item ready to sell belongs in its cost: the purchase price, transport, customs or tax, and payment fees. Leaving them out makes your margin look bigger than it really is. Rent and salaries are fixed costs: add them in "Monthly fixed costs" to see how many items you must sell to cover them.
Does it convert between currencies?
No. The currency only changes how amounts are written (USD, SOS, KES, ETB or AED). Enter all amounts in the same currency. Nothing is sent anywhere: every calculation happens on your device.
What is a good profit margin for a shop?
It depends on the trade. Busy shops that sell a lot of fast-moving goods, like food and mobile credit, often work on thin margins of 5–15%, while clothes, cosmetics and electronics accessories often carry 30–50%. Compare your margin with your costs and rent: the break-even figure shows whether your margin is enough.
Should my prices end in 9 or be round numbers?
Both work, for different goods. Prices just below a round number, like 129.99 or 34,900 shillings, feel cheaper because people read the first digit, and they tend to sell more everyday goods. Round prices like 130 look confident and premium and make change easy. Choose "Ends in 9" or "Round up" under "Shop price" to see each option and what it does to your margin.
Related

More free tools

Word counter

Count words, characters and reading time as you type, check SMS and social media limits, and set a word goal. Works with Somali text.

Run your shop from your phone

Maareeye by Toos tracks sales, stock and profit for shops in Mogadishu, so you always know what you earn.

Ask about MaareeyeAll tools