Markup & Margin Calculator for E-commerce

Markup and margin in ecommerce are eroded by layers of fees that do not exist in traditional retail — and failing to account for each layer when setting prices is the most common reason online sellers operate at a loss without knowing it. In brick-and-mortar retail, the standard "keystone" markup (2x wholesale cost, yielding 50% margin) is a reliable starting point. In ecommerce, that same 50% margin gets eaten alive: Amazon takes approximately 15% in referral fees, FBA adds another 10–15% for fulfillment, payment processing takes 2.9%, and you have not yet accounted for shipping, returns, or advertising. A product that would thrive at 50% margin in a physical store needs 65–75% margin in ecommerce to net the same profit. The DTC (direct-to-consumer) vs. marketplace decision is fundamentally a margin decision. Selling on your own Shopify store eliminates the 15% marketplace referral fee but replaces it with customer acquisition costs (paid ads, content marketing, influencer fees) that can easily match or exceed that percentage. This calculator is designed for ecommerce sellers who want to understand true margin after all platform fees, fulfillment costs, and advertising expenses. It converts between markup and margin while factoring in the fee structures specific to Amazon, Shopify, and other marketplaces. Price your products with full cost visibility and stop confusing top-line markup with actual bottom-line margin.