Enter costs, fees and target margin
If denominator becomes non-positive, the current fee+margin combination is not feasible.
| Required Selling Price | |
| Expected Variable Cost | |
| Expected Profit Per Order | |
| Break-even Price (0% margin) |
Ecommerce Toolkit
Target Selling Price Calculator
Calculate the listing price required to hit a target net margin with your current cost and fee structure.
Target selling price calculator for margin-led pricing
This target selling price calculator solves the reverse pricing problem: instead of entering a price and seeing the resulting margin, you enter your cost structure and required margin percentage to get the minimum listing price that makes the product viable. It is useful when launching a new SKU, setting minimum price rules before discount seasons, or re-pricing after cost and fee changes.
How the formula works. Required selling price = Fixed variable costs ÷ (1 − Total percentage fees − Target margin %). Fixed variable costs are product cost, shipping, packaging, and any other flat-rate per-order cost. Total percentage fees are marketplace commission and payment gateway fee expressed as fractions of selling price. The denominator shrinks as fees and target margin rise, pushing the required selling price higher. When the denominator reaches zero or goes negative, no price achieves the goal with the current cost and fee combination — the tool reports this as infeasible. In that case, reduce COGS, lower the target margin, or negotiate better fee rates before scaling.
Floor price vs. target price. The break-even output shows the floor price at 0% margin — the absolute minimum at which all variable costs are recovered with zero profit. Your target price is above this by your required margin percentage. Keep both figures on hand when evaluating promotions: discounting to the floor price eliminates profit but preserves cash flow, while pricing below the floor means each sale adds to net loss. Use the floor price as the hard boundary for sale event pricing and coupon-based discounts.
Competitive ceiling and category price bands. Target price tells you where you need to price based on internal costs alone. It does not account for competitor pricing or what the category's typical price band supports. If your calculated target price is above the prevailing competitive range for the product, the unit economics are not viable at current cost and fee levels — the path forward is sourcing optimization, weight or packaging reduction to lower logistics cost, or repositioning to a less price-sensitive subcategory.
- Use realistic average shipping and packaging costs, not best-case or one-off quoted rates.
- Recalculate target price whenever marketplace commissions or logistics rates change.
- Validate your target price against competitor pricing and actual conversion data.
- If target price exceeds the category ceiling, focus on COGS reduction before adjusting margin targets.
Target Selling Price FAQ
What happens if fees plus target margin exceed 100%?
The formula produces no feasible price. Reduce your fee assumptions or target margin until the combination is achievable.
Does this account for GST on fees?
Not directly. Increase the marketplace fee percentage to include GST impact if you want a more conservative target price.
Can I use this for services, not just products?
Yes. Replace COGS with your service delivery cost and set shipping/packaging to zero for a service pricing scenario.
How do I determine the minimum price I can safely offer during a sale event?
Run this calculator with target margin set to 0% to get the break-even floor price — the absolute minimum at which all variable costs are recovered. That floor price is the lowest you can discount to without incurring a per-order loss. For a tighter boundary, set target margin to 5–8% to preserve a small contribution even on discounted orders. Never use the floor price as a regular listing price; reserve it for short-duration clearance events with a defined exit timeline.
Should I use the same target margin for all products in my catalog?
No. Target margin should reflect each product's competitive context and role in your catalog. High-velocity entry-level products might run at 10–15% net margin to stay competitive on price. Niche or differentiated products can support 25–40% where competition is limited. Products with high return rates need a higher target margin to offset the cost of returns. Category fee differences on Amazon and Flipkart also mean the same gross margin at sourcing translates to very different net margins at checkout depending on the category.
How does switching from Easy Ship to FBA change my required selling price?
FBA replaces your per-order shipping cost with Amazon's weight-based fulfillment fee, which typically includes pick, pack, and last-mile delivery. For light products under 500g shipped to local zones, FBA's minimum slab may match or slightly exceed Easy Ship rates. For heavy, bulky, or regionally distributed SKUs, FBA can cost more per order than a third-party courier. Update the Shipping Cost field with FBA fulfillment rates (from Amazon's rate card for your weight and zone) to recalculate the required selling price under each fulfillment model before deciding.