Target selling price calculator
Enter your cost and the margin you want to keep. You get the price that actually delivers it — fees included.
Your numbers
Per unit.
Profit as a share of revenue.
Marketplace and payment fees.
Per order.
Packaging, ads, inserts.
Result
Enter your numbers and the result appears here.
How this is calculated
- Margin is measured against revenue, so the cost is divided rather than marked up.
- Price = (cost + shipping + other) / (1 - target margin - fee rate).
- Adding a fee rate raises the price, because fees are charged on the selling price itself.
- If margin plus fees reach 100%, no price can deliver that margin and the calculation stops.
- The tax-inclusive figure adds 10% as a common VAT example — adjust for your own rate.
Formula
- Target price
price = (cost + shipping + other) / (1 - margin - fee rate)Adding a percentage to cost gives markup, not margin.
- Fee
fee = price x fee rate- Tax-inclusive price
price x 1.1
Worked example
Cost 10.00, target margin 30%, marketplace fee 10%.
- Denominator: 1 - 0.3 - 0.1 = 0.6
- Price: 10.00 / 0.6 = 16.67
- Check: 16.67 revenue - 1.67 fee - 10.00 cost = 5.00 profit, exactly 30%
You need to charge 16.67 to keep a 30% margin. Simply adding 30% to cost (13.00) leaves a real margin of about 15%.
Things to watch for
- Do not confuse this with markup pricing. A 30% margin and a 30% markup produce different prices.
- Check the market too. If the calculated price sits above competitors, the cost or the margin target has to move.
- Planning discounts? Make sure the discounted price still clears the break-even price from the margin calculator.
- The tax-inclusive figure uses 10%. Substitute your own VAT or sales-tax rate where it differs.
Frequently asked questions
Why not just add the margin to the cost?
Because margin is a share of revenue. Adding 30% to a cost of 10 gives 13, and the profit of 3 is only 23% of revenue. To reach a true 30% margin you divide by 0.7.
Why does a fee raise the price so much?
Fees are charged on the selling price, so raising the price raises the fee as well. The formula accounts for that by subtracting the fee rate in the denominator.
The price is above what competitors charge.
Lower the cost, accept a smaller margin, or change the shipping policy. The margin calculator lets you test several prices and see the profit each one leaves.
How should I round the price?
Most sellers round to a psychological price point. Round first, then re-check the real margin with the margin calculator.
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Last reviewed: August 25, 2026
Results are for guidance only. Actual bills, taxes and pay depend on your contract and the official rules that apply to you.