How we calculate

Revenue is product price plus shipping charged to the buyer. Percentage fees apply to this total. Contribution subtracts product cost, seller shipping, packaging, advertising, expected returns allowance and fixed fees. Allocated overhead is shown separately.

Contribution margin divides contribution by revenue. Target price solves revenue = variable expenses ÷ (1 − fee rate − target margin), then subtracts buyer shipping. Amount mode solves (variable expenses + target contribution) ÷ (1 − fee rate).

Break-even acquisition cost adds the entered advertising cost back to contribution. Revenue ROAS divides revenue by that capacity when positive. Discount comparison keeps buyer shipping and costs fixed, recalculating percentage fees on discounted revenue.

Decimal arithmetic is used with 32-digit precision. Display results round to cents. Target prices round upward, and discounted prices round to the nearest cent before calculation. Zero denominators are explained. The model excludes tax, exchange conversion, demand prediction and marketplace-specific rules.