Export Price Calculator
Build the FOB cost of an order, then price it by margin or by markup — and see the gross profit and gross margin that result.
Enter Your Order
Your Export Price
Margin and Markup Are Not the Same Number
Margin is a share of the price
A 20% margin means 20% of what the customer pays is profit. The rest covers cost. price = cost ÷ (1 − margin)
Markup is a share of the cost
A 20% markup means you added 20% of the cost. price = cost × (1 + markup) — and that price carries only a 16.7% margin, not 20%.
Markup is always the larger number
For any given price, markup is a percentage of a smaller base (cost) than margin is (price). That is why the two figures never match, and why quoting "20%" without saying which one is a real risk.
This calculator shows both
Whichever basis you choose to price with, the results always report the resulting gross margin and the equivalent markup, so you can hand either figure to whoever asks for it.
The Same Cost, Two Very Different Prices
A product costing $100, priced five ways. The margin column and the markup column describe the same prices — they are just two ways of naming the same relationship.
| If you price at | Selling price | That is a margin of | And a markup of |
|---|---|---|---|
| 10% margin | $111.11 | 10.0% | 11.1% |
| 10% markup | $110.00 | 9.1% | 10.0% |
| 20% margin | $125.00 | 20.0% | 25.0% |
| 25% margin | $133.33 | 25.0% | 33.3% |
| 40% margin | $166.67 | 40.0% | 66.7% |
| 50% margin | $200.00 | 50.0% | 100.0% |
Two rows are worth sitting with. Pricing at 10% markup leaves a 9.1% margin — the gap is small but it is real, and it grows as the rate grows. Pricing at 50% margin requires a 100% markup: you must sell at double cost. A seller who confuses the two and prices at "50%" believing it is a margin, but applying it as a markup, charges $150 instead of $200 and gives away half the intended profit: $50 of the $100 it was meant to earn.
For a wider set of conversions, including working backwards from a selling price to find the margin you actually made, use the profit margin calculator.
What Counts as Gross Profit Here
The profit figures on this page are gross: order value minus the FOB cost of the goods and the origin charges. That is the right number for pricing a quote, and it is deliberately not the same as your net profit. It excludes everything that happens after the goods are on board — and it excludes your own overheads: salaries, rent, marketing, financing and currency losses. A 20% gross margin is not a 20% net margin, and the difference is your operating cost base.
The FOB cost line is built the same way as everywhere else on this site: product cost per unit plus the shipment's origin charges divided across the quantity. The item-by-item breakdown of what belongs in it is on how to calculate an FOB price, and the formulas are documented on the methodology page.
Next Steps
- CIF calculator — carry the FOB price forward to a delivered-to-port price.
- Landed cost calculator — what your buyer pays once duty is added.
- Profit margin calculator — margin, markup, cost and price, in any direction.
- FOB price from EXW — why the origin charges on a small order dominate the price.
Frequently Asked Questions
What is an export price?
The price at which goods are sold across a border, expressed on a named Incoterms rule and place. This calculator produces an FOB price — the seller's price once the goods are on board at the origin port.
Should I price by margin or by markup?
Either, as long as you and the buyer mean the same thing. Margin is more common in export pricing because it describes the profitability of the sale directly. Many buyers and distributors quote in markup, so the calculator reports both.
Does the calculator include freight and insurance?
No. It prices the goods to the FOB point. Add ocean freight and marine insurance with the CIF calculator to quote CFR or CIF.
What is a good gross margin for an export order?
It depends on the product, the market and what your overheads have to cover — there is no universal figure, and this site does not publish one. What matters is that the margin you quote is the margin you planned, which is what the margin and markup rows let you verify.
Why is the equivalent markup higher than my margin?
Because markup is calculated on cost and margin is calculated on price, and price is always larger than cost. Both describe the same profit.