Margin and Selling Price Calculator

Enter unit cost, extra costs, platform fee and target margin to get a selling price that does not lose money, plus profit and fee per unit.

How to use

  1. Enter the unit cost without VAT.
  2. Enter extra per-unit costs such as packing, shipping or advertising. Use 0 if none.
  3. Enter the platform fee rate (0 if you sell directly).
  4. Enter the target margin. The selling price before and after VAT, the profit per unit and the fee appear at once.
  5. If margin plus fee reaches 100% no price can work and the tool says so.

FAQ

How is the margin calculated?

Margin = profit ÷ selling price × 100. With a cost of 10,000 and a 30% margin (no fee) the price is 10,000 ÷ 0.7 = 14,286 and the profit 4,286.

What is the difference between margin and markup?

Margin is profit over the selling price, markup is profit over cost. The same 4,286 profit is a 30% margin but a 42.9% markup, and the price is 1.43 times cost (1 ÷ (1 − margin)). A 50% margin is a 100% markup, or twice the cost.

How do I include fees and extra costs?

Price = (cost + extra costs) ÷ (1 − margin − fee rate). A cost of 10,000 plus 2,000 packing and shipping, a 10% fee and a 30% margin gives 12,000 ÷ 0.6 = 20,000, of which 2,000 is the fee and 6,000 is profit.

Should the cost include VAT?

A standard VAT-registered business reclaims the VAT it pays on purchases, so enter the cost without VAT. Exempt and simplified-regime businesses mostly cannot reclaim it, so use the VAT-inclusive cost.

The platform charges its fee on the VAT-inclusive price.

This calculator applies the fee rate to the price before VAT, so multiply the platform's rate by 1.1: a 10% fee on the VAT-inclusive price is 11% here. With a cost of 10,000 and a 30% margin the price becomes 16,949.

What if the margin is too high?

If margin plus fee rate is 100% or more, no price can meet it and the tool asks you to lower them.