Item Cost The Cost to acquire the item and might also include variable costs such as your additional production time and packaging rolled into it. Total Cost = Item Cost + Shipping Cost + Selling Cost + Transaction Cost. Cost * (1 + Markup) = Selling Price and therefore, Markup = (Selling Price / Cost) - 1 Cost Expense incurred to produce and distribute the item. That result is then added to your total costs to set your selling price. Markup The percentage applied to Costs incurred to produce and distribute the item.

Gross Profit Margin = Gross Profit / Revenue. Margin Gross Profit Margin A percentage expressed as a ratio of gross profit to the revenue. Revenue is amount received from the buyer less the Taxes. Profit Gross Profit The amount of money earned after Cost has been paid. If you are using an ecommerce platform service that charges a monthly fee instead of a per transaction fee you'll need to forecast your sales and how that fee is distributed on a per item cost basis then enter that amount under fixed selling fees. This calculator will be most useful for merchants that have costs associated with a per transaction fee when selling items through an online marketplace such as Etsy, eBay or Amazon and using a credit card processing service like PayPal to process payments. Target profit or return can be set to a profit in dollars, a margin percentage or a markup percentage. Use this price calculator to determine the required selling price of an item in an online marketplace so that you achieve your desired profit.

Cost per item formula