Understanding your result
The price covers product cost, a fixed per-unit fee, a percentage-of-price fee, and the target profit share. The profit figure is after those entered costs only. It does not imply that rent, salaries, returns, tax, or other overhead have been covered.
To check the margin of a selling price you have already chosen, use the Profit Margin Calculator with costs entered on a consistent basis.
The formula
Percentage terms are decimals. The selling fee and target margin are both measured against the final price, so their combined share must be below 100%. Markup is separately measured against product cost and is undefined when that cost is zero.
Pricing after a platform fee
A product costs 60 and incurs a fixed fee of 5 plus a 10% fee on price. To keep a 25% margin, divide 65 by 0.65. The required price is 100: costs consume 60, fees consume 15, and profit is 25.
How to use this calculator
- Enter the product cost allocated to one sale.
- Add any fixed per-unit fee and percentage fee charged on the selling price.
- Enter the target margin and review the price components before rounding your actual listed price.
Check what the fee is charged on
A marketplace may charge commission on a tax-inclusive order total, include shipping, apply a minimum fee, or use category-specific tiers. This model assumes one percentage charged on the entered net selling price plus one fixed fee per unit. Convert your costs to that basis or use a more detailed order-level calculation.
Rounding a calculated price down can reduce the achieved margin. If you choose a retail price ending in a particular amount, check its actual margin again using that chosen price and all relevant costs. A desired margin is a pricing input, not proof that customers will buy at the resulting price.
Assumptions & limitations
What this calculation assumes
- All percentage charges use the same final selling-price base.
- Product and fixed selling costs are allocated per unit.
- The target margin is before unentered overhead and taxes.
What to keep in mind
- No minimum commissions, refunds, bulk discounts, or tiered fees are modeled.
- Currency rounding and tax calculation may affect the final invoice.
Common questions
Why is margin different from markup?
Margin divides profit by selling price. Markup compares a price increase with cost. The denominators differ, so the same percentage does not produce the same price.
What if cost is zero?
The price can still cover fixed fees and a target margin. A markup percentage on zero product cost has no finite definition, so it is labeled undefined.