Calculate your real margin, markup, and see how fees differ across Etsy, Amazon, Shopify, and Gumroad.
Our pricing calculator spreadsheet does the maths for you - just enter your costs and see profit instantly across your full product line.
These two terms are often confused, but they measure different things. Profit margin is your profit as a percentage of the selling price - it tells you what portion of each dollar in revenue you actually keep. Markup is your profit as a percentage of your costs - it tells you how much you've added on top of what the item costs you.
For example, if you sell something for $30 and it costs you $12, your profit is $18. Your margin is 60% ($18/$30) while your markup is 150% ($18/$12). Both are useful, but margin is generally more practical for comparing across products and platforms.
This varies widely by product type and platform. Digital products typically achieve 70-90% margins since there are no material costs per sale. Physical handmade goods on Etsy typically range from 30-50%. Dropshipping margins tend to be 15-30%. The key is knowing your numbers and making sure every product in your catalogue is actually profitable after all fees are accounted for.
Different platforms take different cuts. Etsy charges around 10-13% in combined fees, Amazon takes 15% referral fees plus FBA costs, Shopify charges credit card processing but no commission, and Gumroad takes 10%. These differences can significantly shift which products are profitable where. Our Digital Product E-Commerce Starter includes a multi-platform fee comparison calculator to help you decide which platform is best for each product.