Desired Margin Price Calculator
The price that delivers the margin you want.
Marketplace commission and payment processing. These scale with price, so they belong inside the calculation.
Selling price
$40.00
for a 45.0% margin
Adding the margin percentage to cost is the common error — it applies the percentage to the wrong base and always undershoots.
How the Desired Margin Price Calculator works
Working forwards from cost gives you whatever margin happens to fall out. Working backwards from the margin you need gives you the price you must actually charge — which is the direction pricing should run.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I price for a specific margin?
Price = cost ÷ (1 − margin as a decimal). For a 40% margin on a £15 cost: 15 ÷ 0.60 = £25. Do not add 40% to the cost — that gives £21 and a 28.6% margin.
How do percentage fees affect the target price?
They have to be inside the calculation, because they scale with the price you set. Price = cost ÷ (1 − margin − fee rate). Ignoring this is why sellers hit their target margin on paper and miss it on the payout.
Why can't I just add the margin to my cost?
Because margin is a share of the price, not the cost. Adding 40% to cost applies the percentage to the wrong base and always undershoots. The gap widens as the target margin rises.
What if the required price is above the market?
Then the cost base is the problem, not the pricing. Either reduce unit cost, differentiate enough to justify the premium, or accept a lower margin knowingly. Pricing above what buyers will pay is not a solution.