Profit margin is the share of the selling price that you keep as profit after the cost of making the item, written as a percentage of the price.
Cost 18, price 45: profit 27, margin 60%, markup 150%.
Work out profit and margin, or the price for the margin you want.
Also used in: Markup Calculator, Etsy Fee Calculator
Margin tells you how much of every sale is actually yours, which is what pays for your time, your marketing and the months when sales are slow. It is worked out as (price − cost) ÷ price.
It is easy to mix up with markup, which divides by the cost instead, and the mix-up leads to underpricing: a 50% markup is only a 33% margin. Fees and shipping you pay count as costs too, so the margin on a marketplace sale is lower than on a direct one.
A photographer's A3 print costs 18 to make (paper, ink, packaging) and sells for 45.
The profit is 27, so the margin is 27 ÷ 45 = 60%. If she wanted a 70% margin on the same cost, the price would have to be 18 ÷ 0.3 = 60.
Turn this into a whole campaign
Priced it? Spotlight's Campaign mode writes the posts that sell it, one version for each platform.
Campaign mode is part of the Spotlight workspace on CAPTD's paid plans — see pricing.
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