Marketplace profit & selling price

Revenue = item price + shipping charged. Expected extra returns loss = return%/100 × extra loss per return. Other costs = item + delivery + packaging + fixed fee + ads + expected extra returns loss. Profit = revenue × (1 − fee%/100) − other costs. Target item price = max(0, other costs ÷ (1 − fee%/100 − target margin%/100) − shipping charged). Start with the item selling price and any shipping charge paid by the customer. Enter the costs you incur for each order, plus a combined percentage fee on item and shipping revenue. Add a fixed per-order fee separately. The returns allowance is an expected additional loss: return frequency multiplied by the extra loss caused by one return. Include refunded revenue or unrecoverable extra costs there only to the extent they are not already counted elsewhere. The target selling price solves for your chosen profit margin on total revenue, including shipping. The fee percentage and target margin must add to less than 100%.

With item selling price 50, shipping charged to customer 5, item cost per order 20, your shipping cost per order 4, packaging cost per order 1, combined percentage fee (%) 10, fixed fee per order 0.3, advertising cost per order 2, orders returned (%) 5, additional loss per returned order 10, target profit margin (%) 20, the expected profit per order is $21.70. Expected margin: 39.45%; Minimum selling price for target margin: $34.71; Percentage and fixed fees combined: $5.80; Expected extra returns loss: $0.50; Revenue including shipping: $55.00.

This is an estimate based on the inputs and assumptions shown on this page, not professional advice. Check anything with financial, health or safety consequences independently.

Yes. Calculations run in your browser and your numbers are not sent to a server. A share link contains the inputs you choose to share, so check it before sending it to anyone.

Yes. Pick from 33 currencies and the amounts are labelled to match. The selector does not convert between currencies, so enter prices in your own currency.

The calculator adds the item price and shipping charged to the customer, deducts percentage fees on that total, then subtracts item, delivery, packaging, fixed-fee and advertising costs. It also subtracts an expected additional returns loss based on your return rate.

This model applies the combined percentage fee to both item and shipping revenue. Some marketplace charges use that basis, but policies and fee components differ. Check your own statement and current fee schedule before combining fees into the entered percentage.

Enter the net extra loss caused by a return beyond the normal costs already entered. This can include refunded revenue, return postage or other unrecoverable charges, adjusted for recoveries. Do not count the same item or delivery cost a second time without an additional loss.

Margin divides profit by revenue, while markup divides profit by cost. This calculator targets a margin on item price plus shipping revenue. A 20% margin means keeping 20 of every 100 in total revenue after the costs included in this model.

The remaining share of revenue has to cover the entered non-percentage costs. If fees and target margin consume all revenue or more, the target-price formula has no usable positive denominator. Reduce the target or correct the fee inputs.

It includes only the costs and fee assumptions you enter. It does not look up VAT, sales tax, refunds or platform-specific fee tiers. The target price also assumes your per-order costs, return allowance and shipping charge stay unchanged as the item price changes.