Seller Pricing & Profit

Solving a Selling Price After Order Costs, Fees and a Target Margin

Updated

A target margin must be left after the selling fees and costs included in the calculation. Adding a percentage to product cost alone can miss packaging, delivery and advertising allocation.

The Whatson Target Selling Price Calculator separates those costs and solves the price when an entered sales based fee also depends on that price.

Put fixed amounts and percentage fees in different fields

Enter product cost, packaging, seller shipping expense, ad allocation, other included cost and any fixed selling fee. Their sum is the amount that must be covered before the sales based fee and target margin.

The percentage fee uses the solved selling price as its base. This worksheet assumes no separate shipping receipt, so use net seller shipping expense consistently.

PKR 850 of costs with a 10% fee

For a hypothetical order, use PKR 600 product cost, PKR 50 packaging, PKR 100 shipping and PKR 100 ad allocation. Leave other and fixed selling fees at zero. Included non percentage cost is PKR 850.

Enter a 10% sales fee and 25% target margin. The checked required price is 850 ÷ (1 − 0.10 − 0.25) = PKR 1,307.69, rounded for display.

At full precision, the fee is PKR 130.7692 and profit after included costs is PKR 326.9231. Profit remains 25% of the calculated price.

Why a simple 25% addition falls short

Adding 25% to PKR 850 would produce PKR 1,062.50. That is markup on the entered cost; it neither sets a 25% margin nor solves the extra fee on revenue.

Markup Calculator shows the cost plus relationship. Profit Margin Calculator checks a price that has already been chosen.

Keep the denominator possible

The sum of target margin and percentage fees must be below 100%. At 100%, no positive share of the selling price remains to cover the entered cost, so the tool rejects the combination.

A zero included cost can generate a zero price. That is a signal to enter actual costs, not a price recommendation. Starting worksheet values are editable illustrations, and fee rates are not fetched from any platform.

Review what the target excludes

The result is before unentered expenses and tax. Do not count the same ad allocation or shipping amount twice, and do not label the output statutory net profit.

For a channel with distinct receipt bases, withholding and courier payout deductions, Daraz Order Profit Calculator or COD Order Profit Calculator provides a different statement model. Save the chosen fee basis and cost scope alongside any quote derived from this target price.

Target Selling Price Calculator

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