Profit & pricing
Start with your costs, percentage fees, and target profit margin. MerchQuill works backward to the selling price you need and shows the break-even floor beside it.
Backward pricing
MerchQuill solves for the selling price required to leave your target profit margin after the costs you enter.
Fixed per-sale costs
Percentage fees
Quick margin targets
All calculations stay in your browser. Percentage fees are modeled as a percentage of the selling price you enter.
Understand the price
Instead of choosing a selling price first and checking the result later, this calculator solves the pricing equation from the margin you want to keep after the modeled costs and fees.
Fixed costs must be covered by the share of revenue left after percentage fees and target profit margin. When those two percentages are included, the backward-pricing formula is:
Break-even uses the same fee-aware logic but removes the target profit margin. It estimates the selling price where modeled revenue exactly covers the fixed per-sale costs and percentage fees you entered.
Profit margin compares profit with selling price. Markup compares the amount above cost with cost. A 30% profit margin therefore does not mean adding 30% to cost, especially once percentage fees are involved.
The calculator assumes the marketplace and payment percentages are applied to the selling price being modeled. Real platforms may calculate fees from different bases or add fixed charges, taxes, advertising, discounts, or shipping-related fees. Put fixed per-sale charges into the fixed-cost fields and verify current platform rules separately.
A workable target depends on product category, returns, advertising, discounts, overhead, taxes, customer acquisition, and how much room you need for promotions. Use the target presets as planning shortcuts, not as a promise that a margin is appropriate for every business.
FAQ
Add your fixed per-sale costs, then divide them by the share of revenue left after percentage fees and your target profit margin. MerchQuill performs that backward-pricing calculation instantly.
Break-even price equals fixed per-sale costs divided by one minus the combined percentage fee rate. This accounts for fees that rise as the selling price rises.
Profit margin measures profit as a percentage of selling price. Markup measures the amount added above cost as a percentage of cost. They are not interchangeable.
If combined percentage fees plus the target profit margin reach 100% or more, there is no remaining share of revenue to cover fixed costs, so the model has no finite target price.
No. The calculator uses only the costs and percentage fees you enter and assumes those percentage fees are applied to the modeled selling price. Marketplace fee bases, taxes, discounts, and shipping rules can differ.
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