Selling Price from Margin Calculator
Price from cost and target margin, fees included.
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 Selling Price from Margin Calculator works
The formula is cost divided by one minus the margin — and the mistake almost everyone makes is adding the margin to the cost instead. The gap widens as the target rises: at a 60% target, the wrong method leaves you a third short.
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
What is the formula for selling price from margin?
Price = cost ÷ (1 − margin). For a 45% margin on a £22 cost: 22 ÷ 0.55 = £40. Adding 45% to £22 gives £31.90 and only a 31% margin.
How do I include marketplace fees?
Subtract the fee rate alongside the margin: price = cost ÷ (1 − margin − fee rate). Targeting a 40% margin with 13% in fees means dividing by 0.47, not 0.60 — a much higher price than most sellers expect.
What margin should I target?
Work back from what the business needs. Total your fixed costs, decide the profit you want, estimate achievable volume, and the required margin falls out. Picking a round number like 50% because it sounds right is guessing.
What if the resulting price looks too high?
Then the cost base does not support that margin at that price point. Reduce unit cost, accept a lower margin deliberately, or reposition the product so a higher price is credible. Quietly hoping is not one of the options.
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