What markup do most Amazon sellers use?

Successful Amazon FBA sellers typically target 150–200% markup on landed cost (COGS + inbound shipping). This translates to approximately 60–67% gross margin before Amazon fees. After referral fees (15%) and FBA fees, the net margin is typically 20–35% — the 'Healthy' to 'Strong' zone on our FBA Calculator.

How do I convert markup to margin?

Margin % = Markup % ÷ (100 + Markup %) × 100. Example: 100% markup → 100 ÷ 200 × 100 = 50% margin. 50% markup → 50 ÷ 150 × 100 = 33.3% margin. This calculator does the conversion automatically.

✖️

Markup Calculator

Calculate markup percentage, convert markup to margin, and find the right selling price from cost

The Markup Calculator converts between cost, selling price, and markup percentage — and simultaneously shows you the equivalent profit margin. Many business owners use markup and margin interchangeably, but they're calculated differently and lead to very different prices. A 50% markup is not a 50% margin. This calculator clarifies both, instantly.

Markup Calculator

Cost per unit ($)Markup percentage (%)

Selling price$40.00

Profit per unit$20.00

Markup on cost100%

Equivalent margin on revenue50.0%

Key insight: A 100% markup ≠ a 100% margin. Your 100% markup equals a 50.0% profit margin.

↗Share

⚙️Add as widget

How to embed this tool on your website

No account, no coding. Copy the embed code and paste it where you want it to appear:

<iframe src="https://sellertoolsonline.com/markup-calculator/?embed=1"
  style="width:100%;max-width:560px;height:650px;border:0;"
  title="Markup Calculator" loading="lazy"></iframe>
<p>Free <a href="https://sellertoolsonline.com/markup-calculator/">Markup Calculator</a> by SellerTools Online</p>

1Copy the code

2Paste it on your page

3It just works

Recommended tools

🛒

Accounting Ledger Book for Small Business

Simple physical ledger for tracking costs, markups, and margins across products.

Amazon →

Affiliate links — we may earn a small commission at no extra cost to you. Disclosure

Markup and margin are two of the most commonly confused financial metrics in retail. Here's how to use this calculator to get both right.

Step 1 — Enter your cost

Enter your total cost per unit. For retail: wholesale cost. For Amazon: COGS + all fees. For services: direct cost to deliver.

Step 2 — Enter markup % or selling price

Enter either your markup percentage (to find the price) or your selling price (to find the markup). The calculator updates the other field automatically.

Step 3 — Note the margin equivalent

The calculator shows your profit margin alongside markup. Use margin % when talking to investors; use markup % when talking to suppliers or setting wholesale prices.

💡 Pro tips

•Keystone markup (100%) = 50% margin — the standard starting point for retail
•Amazon FBA needs 150–200% markup on landed cost to achieve 20–30% net margin after fees
•When giving wholesale prices to retailers, specify which markup you mean to avoid confusion
•Higher markup doesn't always mean more profit — sales velocity matters too

Frequently Asked Questions

50% markup: Cost $10 → Price $15. Profit = $5 = 33% margin. 50% margin: Profit is 50% of revenue → Cost $10 → Price $20. Same cost, very different prices. Always clarify which metric you're using in business conversations — the confusion between these two causes real financial errors.