Why divide instead of adding the fee percentage?

Because the fee is a share of the final price, not an addition to it. Adding 20% to a cost base and then losing 20% of the result leaves you short.

Does this work for Poshmark?

Partially. Poshmark charges $2.95 under $15 and 20% at or above $15. The formula uses the 20% branch, so if the answer comes out under $15, re-check it against the flat-fee tier.

How do I account for promoted listings in pricing?

Include your ad rate in the fee rate. It is approximate, because ad fees apply only to sales attributed to the ad, but it is the safe direction to price on.

Should I include returns in the target?

Yes, if you want them covered. Add an allowance per sale for return rate multiplied by the cost of a return, or simply raise your profit target.

What if no price can hit my target?

That usually means the item is too cheap for the fixed costs or your sourcing cost is too high. The honest options are to bundle it, sell it on a lower-fee platform, or not list it.

Resale Pricing Calculator (Work Backwards From Profit)

The usual direction is "I priced it at $40, what do I make?" The useful direction is the opposite one.

Short answer

To hit a target profit, divide your target plus all fixed costs by one minus the marketplace fee rate, then subtract what the buyer pays for shipping. On eBay US in a standard category at 13.6% with a $0.40 per-order fee, a $15 item, $6.50 postage, $0.50 packaging and a $20 target profit require an item price of about $44.07 — the buyer's $5 postage then brings the total they pay to $49.07. The fee is charged on the total the buyer pays, not on the item alone.

Your numbers

Target profit per sale

What you paid for the item

What your label costs

Shipping the buyer pays

Packaging & other costs

Fee breakdown

Final value fee · Most categories13.60% × $49.07−$6.67
Per-order fee$0.40−$0.40

Total fees$7.07

Why the division is the whole trick

Most pricing errors come from adding the fee rate instead of dividing by its complement. If fees take 13.6%, you do not add 13.6% — you divide by 0.864. The two answers differ, and the gap grows with the rate.

On a $20 profit target with $15 of item cost and $7 of costs, adding the fee rate gives $47.80. Dividing gives $49.00. The first price quietly misses the target.

Postage inside the fee base

The fee is charged on the item price plus shipping, so the shipping you charge is not free money — the marketplace takes a cut of it.

That is why the formula subtracts the shipping charge at the end. If you have already priced postage to cover the label exactly, the item price that remains is your true required price.

Where this becomes an estimate

Poshmark is piecewise: $2.95 below $15, 20% above. The formula uses the 20% branch, so if your target lands you under $15 the result will be off. eBay US is banded above $7,500, and eBay UK adds VAT on the fees.

Treat the result as the price you must clear, then verify it in the fee calculator for your platform. Round up, not down — the whole point of a target is that missing it is a failure.

Rate table

Most categories	13.6% up to $7,500.00, then 2.35%
Books, movies & music	15.3% up to $7,500.00, then 2.35%
Trading cards	13.25% up to $7,500.00, then 2.35%
Jewelry & watches	15% up to $1,000.00, 6.5% to $7,500.00, then 3%
Women's bags & handbags	15% up to $2,000.00, then 9%
Athletic shoes $150+ (authenticated)per-order fee waived	8%
Guitars & basses	6.7% up to $7,500.00, then 2.35%
Motors parts & accessories	13.6% up to $7,500.00, then 2.35%
Per-order fee	$0.30 on orders up to $10.00, $0.40 above
Promoted Listings (standard)charged only on sales attributed to the ad	your chosen ad rate, 2%–20% of the sale
International sale	about 1.65% of the total transaction
Currency conversiontypically 2–3% worse than mid-market, never shown as a fee	embedded in the exchange rate

Source: the marketplace's own fee page
Rates last verified: 2026-09-20

Formula

required price = (target profit + fixed costs) ÷ (1 − fee rate) − shipping charged

What each term means

target profit: the net profit you want per sale, in cash
fixed costs: per-order fee + label cost + item cost + packaging + extras
fee rate: the marketplace percentage on the total the buyer pays — 13.6% on eBay US standard, 20% above $15 on Poshmark, 10% on Mercari
shipping charged: what the buyer pays for postage, subtracted because it is already inside the fee base

Assumptions

A single percentage rate applies. Banded (eBay above $7,500), tiered (Poshmark below $15) and VAT-stacked (eBay UK) structures make this a starting point rather than exact.
Your ad rate is included in the fee rate. Break-even and target pricing with advertising is inherently approximate, because ad fees apply only to attributed sales.
No allowance for returns or unsold inventory. Add both to your target profit if you want them covered.

Worked examples

eBay US: $20 profit target on a $15 item with $6.50 postage

Buyer pays: $49.07
Total fees: $7.07
Effective rate: 14.4%
Net profit: $20.00

Fee breakdown

Final value fee · Most categories13.60% × $49.07−$6.67
Per-order fee$0.40−$0.40

Total fees$7.07

The required item price is $44.07. Charging $5 for shipping brings the total the buyer pays to $49.07; after $7.07 of fees and $22.00 of costs, the profit is exactly $20.

A $5 profit target on a $3 item

Buyer pays: $15.51
Total fees: $2.51
Effective rate: 16.2%
Net profit: $5.00

Fee breakdown

Final value fee · Most categories13.60% × $15.51−$2.11
Per-order fee$0.40−$0.40

Total fees$2.51

Small targets on cheap items are dominated by fixed costs. The $0.40 per-order fee here would be the same on a $500 sale, which is why low-value items are only worth listing when they sell quickly.

Every figure above is computed from the rate schedule on this page for eBay (US), using the same engine as the calculator — not typed in by hand.

Common mistakes

Adding the fee rate instead of dividing by its complement

At 20% the error is about 25% of the required price — and it grows with the rate. Always divide.

Pricing the item and forgetting the shipping base

Marketplace fees apply to postage too, so a shipping charge priced at cost still leaks a percentage to the platform.

Working from payout instead of profit

Pricing to a payout target ignores the cost of goods and postage. Price to profit; the payout takes care of itself.

Rounding the required price down

Rounding down guarantees you miss the target. Round up — the buyer sees the difference, your bank account does not.

Ignoring that cheaper platforms change the answer completely

The same target needs a materially lower price on Depop or Vinted than on Poshmark. Run the number per platform before deciding where to list.

Questions

How do I calculate a selling price for a target profit?: Add your target profit to all fixed per-sale costs, divide by one minus the marketplace fee rate, then subtract the shipping you charge. That is the item price you need.
Why divide instead of adding the fee percentage?: Because the fee is a share of the final price, not an addition to it. Adding 20% to a cost base and then losing 20% of the result leaves you short.
Does this work for Poshmark?: Partially. Poshmark charges $2.95 under $15 and 20% at or above $15. The formula uses the 20% branch, so if the answer comes out under $15, re-check it against the flat-fee tier.
How do I account for promoted listings in pricing?: Include your ad rate in the fee rate. It is approximate, because ad fees apply only to sales attributed to the ad, but it is the safe direction to price on.
Should I include returns in the target?: Yes, if you want them covered. Add an allowance per sale for return rate multiplied by the cost of a return, or simply raise your profit target.
What if no price can hit my target?: That usually means the item is too cheap for the fixed costs or your sourcing cost is too high. The honest options are to bundle it, sell it on a lower-fee platform, or not list it.

Related calculators

These calculators apply published marketplace fee schedules. They are general information tools, not tax, legal, accounting or financial advice — check your own payout statement and speak to a qualified professional where it matters.

eBay (US) — 13.6% + $0.40. Rates last verified: 2026-09-20. the marketplace's own fee page.