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
- Enter the unit cost without VAT.
- Enter extra per-unit costs such as packing, shipping or advertising. Use 0 if none.
- Enter the platform fee rate (0 if you sell directly).
- Enter the target margin. The selling price before and after VAT, the profit per unit and the fee appear at once.
- 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.