How to use the Marketplace Margin Calculator
- Enter the selling price, your cost per unit and the shipping you pay.
- Enter the platform fee, the payment fee and other costs such as ads. Load an example fee to get a feel, then replace it with your real fees.
- Tick the box if the price includes 10% VAT. Total fees, profit per unit, margin, total profit and the break-even price appear instantly.
How it works — Marketplace Margin Calculator
Net profit is the selling price minus VAT, fees, cost, shipping and ad cost. If the price includes 10% VAT, one eleventh of it is owed to the tax authority later, so it is subtracted from profit. Fees are usually the selling price times the platform fee rate plus the payment fee rate. Margin is profit divided by selling price, and markup is profit divided by cost. The break-even price is where profit is zero: the sum of cost, shipping and ad cost divided by (1 minus the VAT share minus the fee rate). For example, with a cost of 9,000, shipping of 3,000, ads of 500, total fees of 11% and VAT included, break-even is about 15,600.
Raising your margin
If the margin is low, look at the biggest items first, which are usually cost, shipping and fees in that order. Bundling products can spread shipping, comparing channels can lower fees, and checking how much your ads really add to sales shows whether they pay off. Try several selling prices to see how far above break-even you need to sell.
Tips
- Fee rates depend on category and exposure type, so check the latest notice in your seller center first.
- If you have returns and exchanges, add their average cost to the ads and other cost field.
- Margin and markup use different bases. Check whether a figure is based on price or on cost.
- Switching the VAT box on or off can change profit a lot.
Notes & limitations
This is a reference calculator that works with the numbers you enter. Real fee rates, settlement schedules and income tax or VAT filing must be confirmed with the platform and a tax professional. The example fees are not the actual rates of any specific platform.
FAQ
What are the fees on Coupang and Smartstore?
They differ by category and time and change often. Check the latest fee notice in each seller center and enter it yourself.
What is the difference between margin and markup?
Margin is profit divided by selling price; markup is profit divided by cost.
What is the break-even price?
The price at which profit is zero. You need to sell above it to make money.