Enter your product cost, target profit margin and platform fee percentage to calculate the exact price to charge so you hit your margin goal after all deductions.
Many sellers make the mistake of setting a price, then checking what margin they end up with. This tool works in reverse: you specify the margin you want, and it calculates the price you need to charge to actually achieve it — after your costs and platform fees are deducted.
Platform fees eat into margin significantly. Etsy's combined fees are roughly 10–13% of the sale price. Gumroad takes roughly 13–14%. Amazon FBA can be 20%+. If you ignore platform fees when pricing, you end up with a margin much lower than you expected.
Etsy (UK): ~10–13% total (listing £0.16 + 6.5% transaction + 4% + £0.20 processing)
Gumroad: ~13–14% (10% platform + ~3.5% payment processing)
Amazon (standard category): ~18–20% (15% referral + 3–5% processing)
Shopify Payments: ~2–3% (transaction only — no platform cut)
Stripe / PayPal direct: ~1.5–3% (card processing only)
For physical products: aim for at least 30% net margin after all fees and costs. For digital products (no ongoing unit cost): 60–80% is achievable and expected. For services: 40–60% net margin is typical for healthy freelance or agency work.
Because margin is calculated on the selling price, not the cost. A 50% margin means profit is 50% of the selling price. If your cost is £10 and you add 50% to get £15, your margin is actually 33%, not 50%. This calculator handles that correctly — always use it instead of adding percentages to costs.
Yes. After calculating the mathematically correct price, round to the nearest attractive price point — £9.99, £14.99, £19.00, £25.00. Run the result back through the profit margin calculator to check what the rounded price actually delivers in margin, and adjust accordingly.
This calculator focuses on variable margin (cost per unit vs selling price). To cover fixed costs, use the Break-even Calculator to find your minimum sales volume at a given margin, and factor that into your pricing strategy.