How do I calculate the selling price to make a profit?

To calculate selling price for a target profit, add your item cost, shipping cost, and all fees together to get total cost. Then add your desired profit to the total cost. Divide the result by (1 minus the percentage fees as decimals) to account for marketplace and transaction fees that are taken as a percentage of the selling price.

What is the difference between margin and markup?

Margin is gross profit expressed as a percentage of revenue. Markup is gross profit expressed as a percentage of total cost. For example, if you spend $50 and sell for $100, your markup is 100% but your margin is 50%.

What fees does Amazon charge sellers?

Amazon typically charges a referral fee between 8% and 15% depending on the product category, plus optional FBA fulfillment fees. Enter these as a percentage in the selling cost field to calculate your required listing price accurately.

Should I charge sales tax on shipping?

Whether sales tax applies to shipping depends on the state or region. Many US states do tax shipping when it is not separately stated, while others do not. Check the policies of your specific marketplace and your state's tax authority for guidance.

Selling Price Calculator

Selling Price Calculator | Amazon, eBay and Etsy Pricing

Selling Price Calculator

Calculate the exact listing price you need to set on Amazon, eBay, Etsy, or any marketplace to cover all your costs and hit your target profit, margin, or markup.

Target Return

Item Cost ($)

Shipping Cost ($) paid by seller

Shipping Charge ($) charged to buyer

Sales Tax (%)

Charge Sales Tax on Shipping

Selling Cost (Amazon, eBay, Etsy Fee)

Percentage (%)

Fixed Amount ($)

Transaction Cost (Credit Card / PayPal Fee)

Percentage (%)

Fixed Amount ($)

How the Selling Price Calculator Works

The selling price calculator determines the item listing price you must charge so that after all costs and fees are deducted, you achieve your desired return. You can set your target as a dollar profit amount, a gross margin percentage, or a markup percentage.

Understanding Each Cost Component

Item Cost is what you pay to acquire, produce, or package the product. Shipping Cost is what you pay the carrier. Shipping Charge is what you collect from the buyer. If you offer free shipping, enter zero and the net shipping cost is absorbed into the required selling price.

Selling Fees are the marketplace commissions Amazon, eBay, Etsy, and similar platforms charge on each sale, typically a percentage of the total sale amount plus sometimes a fixed listing fee. Transaction Fees are payment processor charges, usually around 2.9% plus a fixed amount per transaction.

Margin vs Markup Explained

Margin is profit as a percentage of revenue. Markup is profit as a percentage of total cost. If your item costs $50 and you sell it for $100, your markup is 100% but your margin is 50%. Both are useful metrics. Margin is more commonly used in retail and finance, while markup is common in wholesale and manufacturing.

Common Marketplace Fee Reference

Common marketplace fees vary by platform and category, so always verify current rates on your marketplace dashboard before pricing products.

Platform	Selling Fee (Typical)	Fixed Fee
Amazon	8% to 15%	Varies by category
eBay	~13.25%	$0.30 per order
Etsy	6.5%	$0.20 listing + $0.25 payment
PayPal / Stripe	2.9%	$0.30 per transaction

Frequently Asked Questions

Add your item cost, shipping cost, and all fixed fees to get a base cost. Then solve for the item price such that after percentage fees and sales tax are deducted, you retain your desired profit. This calculator does all the algebra for you automatically.

Margin is gross profit divided by revenue, expressed as a percentage. Markup is gross profit divided by total cost, also as a percentage. If you spend $50 and sell for $100, your markup is 100% and your margin is 50%.

Amazon typically charges a referral fee between 8% and 15% depending on the product category, plus optional FBA fulfillment fees based on item size and weight. Enter these as a percentage in the selling cost field to calculate your required listing price accurately.

Gross profit equals revenue minus total cost. Revenue is the amount collected from the buyer excluding sales tax. Total cost includes item cost, shipping cost paid by the seller, marketplace fees, and payment processing fees.

Whether sales tax applies to shipping charges depends on your state. Many US states tax shipping when it is included in the item price, while others exempt separately stated shipping charges. Check your state’s revenue authority and your marketplace’s tax policies for guidance.