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🛒 E-commerce & Pricing

Work Backward From the Payout You Need to the Price You Must List

Solve for listing price after marketplace commission, payment percentage and fixed per-order fees instead of guessing and recalculating.

Required listing price

Fees at that price

Effective fee rate

Payout cross-check

Price above payout

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How the calculation works

Target payout + fixed$30.30Share retained82.1%Listing price$36.91Dividing by the retained share correctly accounts for fees increasing with the price.

How to Use This Tool

Adding 18 percent to a target payout does not undo an 18 percent fee. The fee is calculated from the larger listing price, so the correct reverse formula divides the desired payout plus fixed fees by the share you retain. With 17.9 percent in percentage fees, the retained share is 82.1 percent.

Why a simple markup misses

If you need thirty dollars and add 17.9 percent, you list at $35.37. Percentage fees on that price plus the fixed charge leave less than thirty dollars. Reverse pricing solves the equation once, then runs the result forward through the same fee model as a cross-check.

Add fee percentagespayout shortDivide by retained sharetarget met
Percentage fees must be reversed from their own price base, not added to the desired result.

Match the platform's fee base

This model assumes all percentage inputs apply to listing price. Real marketplaces may charge commission on shipping, buyer-paid tax, discounts or other amounts while payment fees use another base. Combine only fees that share the same base; otherwise treat the result as a planning price and verify it against the platform's current fee statement.

Sources & assumptions

Tool Spec v2 · verified 2026-08-18. Platform rules and fees can change; the editable inputs remain authoritative for your account.

Official references

Model assumptions

  • Every entered percentage fee applies to the same listing-price base; platforms may use different bases for tax, shipping or promotions.
  • The calculator does not round to marketplace price endings or include tax collected from the buyer.
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Frequently Asked Questions

What is the reverse marketplace fee formula?
Required price equals target payout plus fixed fees, divided by one minus the combined percentage-fee rate. An optional buffer increases the target first.
Why not add the commission percentage to my target?
Because the commission is charged on the final, higher price. Adding the rate once leaves a smaller base after fees than the target.
Can I combine marketplace and payment fees?
Yes when both use the same price base. If one includes tax or shipping and the other does not, model those differences separately.
What does the buffer do?
It increases the desired payout before reversing fees, leaving room for rounding, returns or small unmodeled charges. It is not a platform fee.
Does the answer include product cost?
Only if your target payout already includes the amount needed to cover product cost and profit. Work out that target first.
Why might the actual payout differ?
Category rates, minimum fees, tiered fees, tax, promotions, shipping and currency conversion can change the platform's actual calculation.

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