SellerKitMargin and markup answer different questions
Margin is profit as a share of revenue. Markup is the amount added as a share of a cost basis. A $10 item sold for $15 has a 50% markup but only a 33.3% margin before additional expenses. Using the same percentage for both can lead to an unexpectedly low selling price.
The target price formula
Let B be all fixed per-order costs including product, packaging, shipping, advertising and the fixed payment charge. Let f be combined percentage fees as a decimal, and m your desired margin as a decimal. The required price is B ÷ (1 − f − m). The target cannot be reached when f + m is 100% or more.
A worked target price
With $15.80 in per-order costs, combined percentage fees of 10.9%, and a target margin of 35%, the required selling price is $15.80 ÷ 0.541, approximately $29.21. The calculator uses full precision internally. A rounded shelf price can produce a slightly different margin, so recheck your chosen final price in the profit calculator.
How the markup comparison works
Here, markup is applied to all entered fixed per-order costs, including the fixed payment fee. With a 100% markup on $15.80, your selling price is $31.60. Percentage fees still need to come out of that price. The actual margin shown accounts for those fees, helping you compare two pricing approaches on the same cost assumptions.
Frequently asked questions
Which costs does markup use?
The basis includes product cost, packaging, shipping, advertising and the fixed fee. Percentage fees are deducted from the resulting price.
Why is a target not achievable?
The target margin plus percentage fees must be below 100%; otherwise the formula has no positive price for positive costs.
Can I apply the suggested price directly?
It is a mathematical estimate. Check rounding, customer demand, competitor pricing and the accuracy of your entered costs.
Are platform rates automatic?
No. Enter your actual fee rates. Default values are illustrative examples.