Calculate the selling price needed to cover product cost, shipping, percentage fees, expected returns, advertising and your chosen profit margin.
Use current rates from your own store or payment provider. A percentage-based return allowance is a simplified planning assumption, not a prediction of actual returns.
The calculator treats product cost, shipping, packaging, expected advertising and other entered dollar amounts as fixed per-order costs. Payment/platform fees and the return allowance are modeled as percentages of the selling price. It then solves for the price that leaves your chosen margin after those costs.
The denominator must remain above zero. For example, a 3% fee, 2% return allowance and 25% target margin leave 70% of revenue available for the entered fixed costs.
Suppose product cost is $12, shipping and fulfillment are $5, packaging is $1, and expected advertising is $15. Fixed per-order costs total $33. With a 3% fee, 2% return allowance and 25% target margin, the required price is $33 ÷ 0.70, or about $47.14. At that price, modeled profit is about $11.79, which is 25% of revenue.
The table updates with your inputs. A higher target margin requires a higher selling price when the other assumptions stay unchanged.
| Target margin | Required price | Modeled profit/order | Price above break-even |
|---|
Include the costs relevant to each order, such as product cost, outbound shipping, fulfillment, packaging, payment processing, marketplace fees, an expected acquisition cost and a reasonable allowance for returns when applicable. The tool does not automatically include tax, salaries, subscriptions, rent, warehousing, chargebacks, discounts or other overhead.
The calculated price shows what your cost and margin assumptions require. It does not prove that customers will accept that price or that conversion rate will remain unchanged. Compare the result with customer value, positioning, competitor alternatives and your actual conversion data.
Important: Keep all monetary inputs in the same currency. The currency selector changes the symbol only and does not convert exchange rates.
Add the fixed per-order costs, then divide that amount by one minus the percentage fee rate, expected return allowance and desired margin. The percentages must be expressed as decimals in the formula.
Include an expected acquisition cost when you want the price to preserve a target margin after advertising. Set advertising to zero when you want to model a price before paid acquisition.
The percentage fee, return allowance and target margin together leave no positive share of revenue for the fixed costs. Lower one or more rates, reduce costs, or reconsider the target margin.
No. It uses only the inputs shown. Tax, fixed overhead, subscriptions, salaries, warehousing, discounts and other costs may materially change the price needed in practice.
No. Margin divides profit by selling price. Markup divides profit by cost. They use different denominators and should not be treated as interchangeable percentages.
TikTok Shop fees · Walmart fees · Mercari fees · eBay fees · Square fees · Poshmark fees · Amazon FBA fees · Black Friday discount profit · Markup vs margin · Shopify fees · Etsy fees · Shopify vs Etsy · PayPal fees · Stripe vs PayPal · Gumroad vs Payhip vs Etsy · Break-even ROAS · Maximum CPA · Profit margin
