How This Calculation Works
Most sellers know their product cost and their selling price, but the money that actually lands in the bank is shaped by a stack of smaller deductions. This calculator applies every deduction in a fixed order so you can see which one is eating your margin. All percentage fees are applied to the selling price the buyer pays, which is how most marketplaces and payment processors bill.
Two guides go with this calculator: how to price a product to keep a 30% margin and margin vs markup.
More on the numbers in the results: how to calculate your break-even price, ROI vs margin and a pricing checklist before you list.
Selling on a marketplace? I wrote up the fees for eBay and Etsy.
Total fees = (Price × Commission %) + (Price × Gateway %) + Flat fee + (Price × Tax %)
Gross profit = Price − Item cost
Net profit = Price − Item cost − Shipping − Total fees
Net margin % = Net profit ÷ Price × 100
ROI % = Net profit ÷ (Item cost + Shipping) × 100
Break-even price = (Item cost + Shipping + Flat fee) ÷ (1 − (Commission % + Gateway % + Tax %) ÷ 100)
Here is a worked example. You sell a phone case for $100 that costs $40 to buy and $10 to ship. The marketplace takes 10%, the payment processor takes 3%, and there is a $0.30 flat fee. Total fees are $10 + $3 + $0.30 = $13.30, so net profit is $100 − $40 − $10 − $13.30 = $36.70, a 36.7% net margin. Break-even is $50.30 ÷ 0.87 = $57.82. Any price below that loses money on every order.
The target margin field works the same formula in reverse. It finds the lowest price at which your net profit equals the margin you want, after every fee has been taken.
Platform Fee Breakdown Table
The table below summarises the typical headline fees for popular selling platforms. Rates vary by category, country, seller plan and promotions, so treat these as a starting point and confirm them in your seller dashboard.
| Platform | Commission / referral | Payment processing | Fixed fees |
|---|---|---|---|
| Amazon (US, merchant-fulfilled) | Varies by category, from 8% to 45% on Amazon's page, with many categories at 15% | Check Seller Central | $0.99 per item on the Individual plan, or $39.99 a month on Professional |
| eBay (US) | 13.6% for most categories, on the first $7,500 of an item (2.35% above that). Other categories differ. | Included in the final value fee | $0.30 per order of $10 or less, $0.40 above $10 |
| Etsy | 6.5% transaction fee (also charged on shipping you collect) | 3% + $0.25 for US bank accounts | $0.20 per listing |
| Shopify (own store) | 0% with Shopify Payments | 2.9% + $0.30 (Basic plan, US online cards) | Monthly subscription |
| Daraz (PK/BD/LK/NP) | Varies by category. Daraz shows it only inside the seller account. | May appear on your statement | Handling fee per item in some markets |
| TikTok Shop (US) | 6% per TikTok's US seller page (some guides report 8%) | Check your Seller Center | Affiliate commission if a creator sells |
| Gumroad | 10% on direct sales, 30% on sales found through Discover | Not stated on the pricing page | $0.50 per direct sale |
Amazon, eBay, Etsy, Shopify and Gumroad figures were checked against each company's own pages on 20 October 2026 and are US figures for comparison only. Check your own dashboard.
How to Reduce Fees and Increase Net Margin
- Price from break-even, not from competitors. Calculate your break-even price first, then add your target margin. Undercutting a rival whose costs you don't know is the fastest way to sell at a loss.
- Bundle to spread flat fees. A $0.30 fee is 3% of a $10 order but only 1% of a $30 bundle. Multi-packs and "frequently bought together" offers dilute fixed costs.
- Choose the right category. Commission often depends on category. List each product in the most accurate category and check whether a closely related one carries a lower rate.
- Negotiate or switch payment processing. Once volume grows, processors often offer lower rates. Local wallets and bank transfers can also cost less than cards.
- Build shipping into the price. "Free shipping" listings often rank better. Include the true delivery cost in your price and run the numbers here to confirm the margin holds.
- Track returns and ad spend. A 5% return rate or a 10% ad cost per sale can erase a thin margin. Add them to your item cost for a more realistic view.
- Sell digital products where you can. With no unit cost, templates, presets and e-books routinely achieve 80%+ margins even after platform cuts.