Calculate Selling Price: Example With Fees and VAT

You know your purchase price and want to know what your product must cost so that real profit is left after fees. Here is an example.

Example: purchase 20 €, 30% target margin

Assumptions: fees 3% of the selling price, fixed costs 2 € per unit (packaging, postage), VAT 19%. The formula for the net selling price is (purchase + fixed costs) ÷ (1 − fees − target margin). So 22 ÷ 0.67 = 32.84 € net, which is 39.07 € gross.

The check

Fees: 3% of 32.84 € = 0.99 €
Profit: 32.84 − 20 − 0.99 − 2 = 9.85 €
Margin: 9.85 ÷ 32.84 = 30%

The markup on the purchase price is about 64% here, far more than the 30% margin. This exact mix-up costs many sellers money.

Small businesses exempt from VAT set VAT to 0%, then net equals gross. This is a calculation aid, not tax advice.

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General calculation aid, not tax or legal advice. All prices are net unless labeled gross. Updated: November 2026

Frequently asked questions

How do I calculate the selling price from the purchase price?

Choose "Selling price from target margin", enter purchase price, fees and fixed costs. The calculator shows net and gross price and the profit per unit.

How much margin makes sense?

It depends on your industry and costs. What matters is that after all fees and fixed costs a profit remains that supports your work.