Reserve Price & Profit Calculator
This tool helps online sellers determine the perfect listing price to achieve a desired profit after all costs and fees.
Enter your costs and fees below. To calculate your breakeven price (where you make $0 profit), simply enter "0" in the "Desired Profit" field.
Enter Your Sale Details
Understanding the Price Calculation
How is the Listing Price Determined?
It's not as simple as adding `Costs + Fees + Profit`. Platform fees are a percentage of the final sale price, which is the very number we are trying to find! This creates a circular dependency that requires a specific formula to solve.
The Reserve Price Formula
The core formula used by this calculator is:
Listing Price = (Total Fixed Costs + Desired Profit) / (1 - Fee Percentage)
- Total Fixed Costs: This is `Item Cost + Shipping Cost + Fixed Fee`.
- Desired Profit: The amount you want to have left over.
- Fee Percentage: The platform's percentage fee, expressed as a decimal (e.g., 13% becomes 0.13).
This formula ensures that after the platform takes its percentage from your final sale price, the remaining amount is enough to cover all your fixed costs and leave you with your desired profit.
10 Real-Life Examples
Click on an example to see how the numbers work in different scenarios.
Example 1: Breakeven on a T-Shirt
Goal: Sell a t-shirt without losing money.
1. Known Values: Item Cost: $12, Shipping Cost: $5, Platform Fee: 15%, Fixed Fee: $0.30, Desired Profit: $0.
2. Total Fixed Costs: $12 + $5 + $0.30 = $17.30
3. Formula: Price = ($17.30 + $0) / (1 - 0.15) = $17.30 / 0.85
4. Result: Listing Price ≈ $20.35. At this price, after fees, you'll be left with exactly enough to cover your $17.30 in costs.
Example 2: Making Profit on Handmade Jewelry
Goal: Make a $20 profit on a handmade necklace.
1. Known Values: Item Cost (materials): $8, Shipping Cost: $4.50, Platform Fee: 12%, Fixed Fee: $0.25, Desired Profit: $20.
2. Total Fixed Costs: $8 + $4.50 + $0.25 = $12.75
3. Formula: Price = ($12.75 + $20) / (1 - 0.12) = $32.75 / 0.88
4. Result: Listing Price ≈ $37.22.
Example 3: Selling an Electronic Gadget
Goal: Make $50 profit on a used gadget with free shipping.
1. Known Values: Item Cost: $150, Shipping Cost: $15, Platform Fee: 13.25%, Fixed Fee: $0.30, Desired Profit: $50.
2. Total Fixed Costs: $150 + $15 + $0.30 = $165.30
3. Formula: Price = ($165.30 + $50) / (1 - 0.1325) = $215.30 / 0.8675
4. Result: Listing Price ≈ $248.18.
Example 4: Digital Product (E-book)
Goal: Net $5 from the sale of an e-book.
1. Known Values: Item Cost: $0, Shipping Cost: $0, Platform Fee: 5%, Fixed Fee: $0.50, Desired Profit: $5.
2. Total Fixed Costs: $0 + $0 + $0.50 = $0.50
3. Formula: Price = ($0.50 + $5) / (1 - 0.05) = $5.50 / 0.95
4. Result: Listing Price ≈ $5.79.
Example 5: Used Book Sale
Goal: Make just $2 on a cheap book.
1. Known Values: Item Cost: $1, Shipping Cost: $3.50, Platform Fee: 14%, Fixed Fee: $0, Desired Profit: $2.
2. Total Fixed Costs: $1 + $3.50 + $0 = $4.50
3. Formula: Price = ($4.50 + $2) / (1 - 0.14) = $6.50 / 0.86
4. Result: Listing Price ≈ $7.56.
Example 6: High-Value Art Print
Goal: Make $150 profit on an art print.
1. Known Values: Item Cost: $50 (printing), Shipping Cost: $25, Platform Fee: 10%, Fixed Fee: $0, Desired Profit: $150.
2. Total Fixed Costs: $50 + $25 + $0 = $75
3. Formula: Price = ($75 + $150) / (1 - 0.10) = $225 / 0.90
4. Result: Listing Price = $250.00.
Example 7: Dropshipping an Item
Goal: Make $15 profit on a dropshipped item.
1. Known Values: Item Cost: $40 (supplier's price), Shipping Cost: $0 (supplier handles), Platform Fee: 12%, Fixed Fee: $0.30, Desired Profit: $15.
2. Total Fixed Costs: $40 + $0 + $0.30 = $40.30
3. Formula: Price = ($40.30 + $15) / (1 - 0.12) = $55.30 / 0.88
4. Result: Listing Price ≈ $62.84.
Example 8: Service on a Freelance Platform
Goal: Take home $80 for a project.
1. Known Values: Item Cost: $0, Shipping Cost: $0, Platform Fee: 20% (e.g., Upwork), Fixed Fee: $0, Desired Profit: $80.
2. Total Fixed Costs: $0
3. Formula: Price = ($0 + $80) / (1 - 0.20) = $80 / 0.80
4. Result: You must charge the client $100.00.
Example 9: Selling on Consignment
Goal: Price an item where the consignment shop takes 50%.
1. Known Values: Item Cost: $0 (it's not yours), Shipping: $0, Platform Fee: 50%, Fixed Fee: $0, Desired Profit: $25 (your cut).
2. Total Fixed Costs: $0
3. Formula: Price = ($0 + $25) / (1 - 0.50) = $25 / 0.50
4. Result: Listing Price = $50.00. (The shop gets $25, you get $25).
Example 10: Low-Cost Collectible
Goal: Make at least $1 on a trading card.
1. Known Values: Item Cost: $0.50, Shipping: $1 (stamp/envelope), Platform Fee: 15%, Fixed Fee: $0.30, Desired Profit: $1.
2. Total Fixed Costs: $0.50 + $1 + $0.30 = $1.80
3. Formula: Price = ($1.80 + $1) / (1 - 0.15) = $2.80 / 0.85
4. Result: Listing Price ≈ $3.29.
Frequently Asked Questions (FAQs)
1. How do I use this tool?
Enter all the costs associated with your item into the fields. Then, enter the profit you wish to make in the "Desired Profit" field. Click "Calculate" to see the minimum price you must list your item for.
2. How can I find my breakeven price?
To find the price where you neither make nor lose money, enter all your costs and then input 0 into the "Desired Profit" field. The result will be your exact breakeven sale price.
3. Where do I find the Platform Fee and Fixed Fee?
Check the seller handbook or fee schedule for your marketplace (eBay, Etsy, Amazon, etc.). They usually charge a percentage of the final sale price (including shipping) and sometimes a small fixed fee per transaction (e.g., $0.30).
4. Why is the calculated price so much higher than my costs and profit combined?
Because the percentage fee is taken from the final price. The calculator finds a price high enough that even after the platform takes its cut, you are still left with enough money to cover your initial costs and desired profit. You are essentially "pricing in" the fees.
5. Does this calculator account for income tax?
No. This tool calculates your net profit from the sale itself. It does not calculate any income taxes you may owe on that profit. You should consult a tax professional for tax advice.
6. What should I do if my shipping cost varies?
It is safest to enter the highest possible shipping cost you might encounter for that item. This ensures you won't lose money on a long-distance sale. Alternatively, you can use a calculated average if you have data from past sales.
7. Can I use this for digital products?
Yes, absolutely. For digital items, simply enter 0 for both "Item Cost" (if applicable) and "Shipping Cost." Then fill in the platform fees and your desired profit.
8. The calculator showed an error. What's wrong?
The most common error occurs if you enter 100 or more into the "Platform Fee (%)" field. A 100% fee would mean the platform takes all your revenue, making it mathematically impossible to set a profitable price. Please check that your fee percentage is correct.
9. Why does the breakdown show a "Net Profit" that's a fraction of a cent off from my "Desired Profit"?
This is due to standard currency rounding. The final price is rounded to two decimal places (cents). The breakdown then calculates the profit based on that rounded price, which can result in a tiny difference of less than one cent.
10. Is this tool the same as an eBay fee calculator or Etsy fee calculator?
It serves the same core purpose. While branded calculators might pre-fill the fee percentages for you, this universal tool gives you the flexibility to enter the fees for any platform, including eBay, Etsy, Amazon, Poshmark, Grailed, or your own website with payment processing fees (like Stripe or PayPal).
