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Margin Calculator
📊 THE BIG 3 METRICS AT A GLANCE
┌──────────────────────────────────────────────────────────┐
│ COST │
│ (What you pay) │
│ $50 │
└───────────────────────────┬──────────────────────────────┘
│
┌───────┴───────┐
▼ ▼
┌─────────────────┐ ┌─────────────────┐
│ GROSS PROFIT │ │ │
│ (Your Cut) │ │ │
│ $50 │ │ SELLING PRICE │
│ │ │ $100 │
└────────┬────────┘ │ │
│ └─────────────────┘
▼
┌──────────────┴──────────────┐
│ │
▼ ▼
┌────────────┐ ┌────────────┐
│ MARGIN │ │ MARKUP │
│ % of Sale │ │ % of Cost │
│ 50% │ │ 100% │
│ │ │ │
│ $50/$100 │ │ $50/$50 │
└────────────┘ └────────────┘
🚨 REMEMBER: 100% Markup = 50% Margin. They are never the same!
⚙️ CHOOSE YOUR MODE
🔵 MODE 1: FIND YOUR PROFIT
You know cost & price. What's your cut?
COST $20
─────────────────────────▶
SELLING PRICE $50
─────────────────────────▶
RESULT:
💰 Profit: $30
📊 Margin: 60%
🏷️ Markup: 150%
🟢 MODE 2: HIT A TARGET MARGIN
You know your cost. What price gets you 40% margin?
COST $15
─────────────────────────▶
MARGIN GOAL 40%
─────────────────────────▶
RESULT:
💲 MUST CHARGE: $25.00
🧠 Mental Math:Price = Cost ÷ (1 - Margin%)
🟡 MODE 3: MAX COST FROM PRICE
Market dictates $100. You need 40% margin. What's your max cost?
SELLING PRICE $100
─────────────────────────▶
MARGIN GOAL 40%
─────────────────────────▶
RESULT:
📦 MAX COST: $60.00
🧠 Mental Math:Max Cost = Price × (1 - Margin%)
🛒 E-COMMERCE REALITY CHECK
The True Cost is More Than Supplier Price
🧱 Supplier Unit Cost $12.00 🚚 Freight & Shipping + $3.00 📦 Box/Filler/Label + $1.50 💳 Processing Fee (3%) + $0.75 ═══════════════════════════════════ 🔴 TRUE COST TO ENTER: $17.25
PRO TIP: Add 15-30% to your raw supplier cost for a realistic COGS figure if you can't itemize every fee.
📈 THE MARGIN HEALTH SPECTRUM
⬛ 0-10% 🚨 DANGER ZONE – One refund wipes out 10 sales 🟥 10-20% ⚠️ RISKY – Survivable only with massive volume 🟨 20-40% ✅ HEALTHY – Room for marketing and discounts 🟩 40-60% 🚀 STRONG – Able to scale aggressively 🟦 60%+ 🏆 EXCEPTIONAL – Premium brand, invest in growth
🏷️ THE DISCOUNT IMPACT CALCULATOR
A 20% off sale doesn't reduce profit by 20%—it's much worse.
| Your Margin | 20% Off Sale | New Margin | Sales Bump Needed to Recover |
|---|---|---|---|
| 20% | → | 0% | 💀 Impossible |
| 30% | → | 12.5% | 🔺 +140% |
| 50% | → | 37.5% | 🔺 +67% |
| 70% | → | 62.5% | 🔺 +33% |
KEY TAKEAWAY: The lower your starting margin, the more devastating a discount is. Never discount a low-margin product without a clear strategy.
🗣️ USE DATA IN NEGOTIATION
What to say to your supplier:
"The market ceiling for this product is $45**.
To maintain my required **40% margin**,
my maximum allowable landed cost is **$27.
How can we get your unit + shipping to this number?"
The calculator turns a gut feeling into a hard business case.
✅ QUICK PRE-FLIGHT CHECKLIST
Before You Set Any Price Live:
-
Did I include shipping in my cost?
-
Did I account for marketplace fees (Amazon/eBay/Etsy %)?
-
Am I looking at Margin % (not Markup %)?
-
If I run a 25% flash sale, am I still profitable?
-
Does this price leave room for paid ads (at least 15-20% margin buffer)?
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