Shipping markup calculator

Enter what shipping costs you and how you want to mark it up. This shows what to charge, and — separately, because they are different numbers — your markup and your margin.

What shipping costs you

Box, tape, and void fill add up. Including them shows what the shipment really costs you.

How to mark it up

A percentage added on top of what the shipment costs you.

As a percentage. Marketplaces usually charge their fee on the shipping you collect as well as the item.

Markup and margin are not the same number

This trips up more sellers than any other piece of shipping arithmetic. If a shipment costs you $8 and you charge $10:

Same two numbers, same $2, two different percentages. Markup is measured against what you paid; margin is measured against what you charged. Margin is always the smaller of the two, and it is the one that tells you what share of the money you keep.

Worked example

Postage $6.13, packaging $0.42, charging the customer $8.45.

Edge cases worth knowing

Common questions

What is a reasonable shipping markup?
Enough to cover packaging and the fee charged on the shipping you collect. Beyond that it is a pricing decision, not a formula, and buyers do notice.
Should I include packaging in the shipping charge?
It has to be recovered somewhere, either in the shipping charge or the item price. This calculator lets you put it in the cost so the markup covers it.
Why is my margin lower than my markup?
Because margin divides by the larger number. A 100% markup is a 50% margin; they are the same transaction described two ways.
Are these amounts exact?
Yes. Everything is calculated in whole cents, and each percentage fee is rounded once, so the totals will match a statement to the penny.

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