Price Builder
You know the cost of the product. You know the margin you want. What you do not know, until the fees come out, is the price that actually leaves you that margin. VAT, an Etsy or Amazon percentage, and a card fee each take a slice, and a discount takes another. Price Builder does that sum in one place, in either direction.
Ask what you should charge, and it returns the price excluding VAT, the VAT, and what the customer pays. Ask what you make at a price you already have, and it returns the margin that is left. Up to three scenarios sit side by side, so you can test a discount or another channel without starting again.
The platform presets are filled from the fee pages linked next to them, and you can edit every figure. A fee changes when the platform says it changes. The breakdown shows the path from the customer's payment to your profit, so you can see which line ate the margin.
Formula
Net price after discount = (unit costs + fixed fees) ÷ (1 − target margin − percentage fees on the net price) A fee charged on the VAT-inclusive price is multiplied by (1 + the VAT rate) first, so it is measured on the net price. Customer pays = net price × (1 + VAT rate) when you are VAT-registered. If you are not, the customer pays the net price and no VAT is added.
Margin is profit divided by the price excluding VAT. Profit is that price minus unit cost, shipping, other per-unit costs, the platform fee, and the payment fee. VAT is not profit: if you are registered you collect it and pass it on. Fixed fees are added to the costs before dividing, because they do not shrink when the price shrinks. If the margin plus the percentage fees use the whole price, no selling price can hit the target.
Worked Examples
Frequently Asked Questions
Why is my margin lower once Etsy or Amazon takes a fee?▾
The fee comes off the price, and a percentage fee also grows as the price grows. A 35% margin target plus a fee on the VAT-inclusive price needs a higher price than cost divided by 0.65. Price Builder puts the fee on the correct side of VAT before it solves for the price.
I think in markup. Will a 40% markup give me a 40% margin?▾
No. Markup is profit divided by cost. Margin is profit divided by the price excluding VAT. A 40% markup is a 28.6% margin. If you type 40 into the margin field, the note under the result says so.
What changes if I am not VAT-registered?▾
The price the customer pays has no VAT added. You also cannot reclaim VAT on the unit cost, postage, or materials, so enter those costs as the full amount you paid. The tool says this next to the result whenever VAT-registered is off.
Does a preset include every fee the platform charges?▾
No. Each preset states what it includes and what it leaves out, and links to the official page. Amazon and eBay rates depend on the category, so those presets name the category. Shopify's monthly plan, Amazon's selling plan, Etsy's listing fee, and Offsite Ads are not in the percentage.
Why does it say the target margin is impossible?▾
Percentage fees and the margin both have to fit inside the price. When they add up to 100% or more, there is nothing left for the product cost, however high you set the price. Lower the margin, or the fee, before a price exists.
What does a discount do to the price I need to charge?▾
The margin is worked out on the price the customer actually pays. A 15% discount means the listed price has to be higher if you still want the same margin after the discount. Add a scenario and change only the discount to see the difference.
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All calculations are for informational purposes only. They should not replace professional financial, tax, or legal advice. Always consult a qualified professional for decisions affecting your finances or business.