Sales Margin Calculator
Calculates profit and target margin selling price per item based on product cost, selling price, fee rate, and shipping cost.
Input
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Result
Check or change the value using the example value result.
The fee rate is entered directly. The displayed profit is a estimate, excluding the product cost, seller shipping fee, and rate fee, without considering other fixed costs, taxes, or returns. All amounts should be entered using the same tax standard.
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Calculation·conversion criteria
Check the profit per unit and margin based on selling price, reflecting cost, seller’s shipping fee, and directly entered selling commission, and calculate the target margin price.
Input example
Cost 5,000 won · Selling price 10,000 won · 10% commission · 500 won shipping fee · 20% target margin
If the cost is 5,000 won, selling price is 10,000 won, commission rate is 10%, seller’s shipping fee is 500 won, then the profit per unit after deducting 1,000 won is 3,500 won, and the margin based on selling price is 35%. The minimum selling price to achieve the target margin 20% is (5,000+500)÷(1−0.10−0.20) rounded up to 7,858 won. The commission rate is entered directly based on the selling price.
How to use
- Use the entered example value or change the product cost (won), selling price (won), selling commission rate (%), seller's shipping fee (won), or target margin rate (%) items.
- Click Verify result and check the following result.
- Result can be copied if needed.
Frequently Asked Questions
How are the margin ratio and cost ratio different?
The margin ratio divides profit by selling price, while the cost ratio divides profit by cost. Since the denominators are different, they are not the same percentage.
Where is the sales fee rate obtained?
Enter the rate directly based on platform or payment method. No current rate is automatically collected, and fixed fees, advertising costs, and return costs are not included.
Is it the final net profit including VAT?
No. Cost, selling price, and shipping fees must be entered based on the same VAT standard, and taxes and unentered costs are not reflected. The result is not accounting net profit or tax calculation.
Calculation criteria and reference materials
- Business Victoria — Calculate your breakeven point, margin and markup
Explanatory material that distinguishes the denominator of profit based on sales and cost based on costs. This tool only adds the directly entered ratio fees and shipping costs as additional expenses.
Verification of calculation criteria: · Calculation·verification principles · Report errors