Product Margin Calculator
Work out the real margin on a product you make, including materials, labour and other costs.
Use the BOM cost calculator to total this up.
Gross margin
46.7%
Profit per unit
21
Markup on cost
87.5%
Margin vs markup
Margin is profit as a share of the selling price. Markup is profit as a share of cost. A 50% markup is only a 33% margin.
Margin = (price − cost) ÷ price
Not sure what your materials cost? Add up every part with the BOM cost calculator.
Frequently asked questions
What margin should a handmade or small-batch product have?+
Many makers aim for 50% or more gross margin so there's room for marketplace fees, discounts and wholesale pricing.
Should I include my own time?+
Yes. Price your labour at what you'd pay someone else; otherwise the margin looks better than it is.
Do marketplace fees count?+
Include payment and marketplace fees in 'other costs' so the margin reflects what you actually keep.
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