Product Margin Calculator

Net margin on a product after landed cost and selling fees.

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About this calculator

Product margin is the sorting test for what deserves shelf space: enter the landed cost (product + freight + duty), the selling price and your fee percentage, and get the net margin and markup. Compare products on the same basis before deciding where to spend marketing.

The formula

Fees = Price × Fee% ÷ 100 Profit = Price − Landed cost − Fees Net margin = Profit ÷ Price × 100

Worked example

Price £45, landed cost £16, 12% fees (£5.40): profit £23.60, net margin 52.4%, markup 181%.

Common mistakes

Comparing one product's margin-with-fees against another's without.
Excluding inbound freight and duty from landed cost.
Chasing high-margin items with tiny absolute profit — £2 at 60% is still £2.

Frequently asked questions

Many healthy DTC products net 30–50% after fees. Below 20% there's rarely room for ads and returns.

Set prices with markup on cost, judge health with margin on price — this tool shows both.

For handmade goods, yes — cost your making time at a wage or the margin is an illusion.

Assumptions & limitations

Percentage fees only; add fixed per-order fees via the Profit After Fees calculator.

Sources & verification

This calculator applies the standard formula published above to the figures you enter — it relies on no external statutory data. The formula and the worked example were checked by hand against each other.

Formula last verified: 24 July 2026

Maintained by: Steve Davis, Founder & Editor — see our editorial standards

Spotted an error or an out-of-date figure? Report it — corrections are prioritised over all other work (see our corrections policy).