What this calculator tells you
A margin target asks for a share of revenue. A profit target asks for a specific dollar amount per order, which can be more useful when fixed operating costs have to be covered one sale at a time.
When to use it
Use it when a product must earn a known contribution per order, such as a private-label item with a specific break-even target.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
Adding the target profit directly to cost and then applying a percentage fee will underprice the product because the fee scales with the final selling price.
Frequently asked questions
How is this different from a target margin calculator?
This tool targets a dollar profit per order. A margin calculator targets a percentage of the final selling price.
What if the fee rate is 100 percent or higher?
No positive price can produce the target. Reduce the fee assumption or revisit the product economics before pricing.
Should taxes be included?
Only include costs that the seller bears and wants to reflect in price. Sales tax treatment depends on the marketplace and jurisdiction.
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