Why "cost plus 30%" doesn't give you 30%
The most common pricing mistake online is adding a markup to your cost and calling it profit. Platform fees are taken from the selling price, not from your cost, so they eat into the markup before you see it.
Take a product that costs ₱180. Add 30% and you list it at ₱234. On Shopee, about ₱47 of that goes to fees. Pay ₱10 for packaging and you lose about ₱3 per order, instead of making the ₱54 you planned.
This calculator works the other way. It starts from the margin you want and solves for the price, with the fees included. It also rounds up to a price ending in 9, like ₱349, which buyers are used to seeing.
Markup vs margin
They sound alike but they measure different things:
Markup = profit ÷ cost
Margin = profit ÷ selling price
A product bought at ₱100 and sold at ₱150 has a 50% markup but only a 33% margin. Margin is the more useful number for online selling, because every fee is a percentage of the price too. When the calculator asks for a target margin, it means profit as a share of what the buyer pays for the item.
| Markup | Same as a margin of |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50% |
What margin should you aim for?
There's no single right answer, but here's a practical way to think about it. Your margin has to cover the things that don't show up on one order:
- Returns, damaged items and lost parcels
- Ads and boosts that don't convert every time
- Your time, rent, internet and tools
- Price drops during big sale days
Many small sellers find that anything under 15% after fees leaves no room for these. Fast-moving, low-effort products can work on thinner margins. Slow sellers, fragile items and anything with a lot of customer questions usually need more.
Planning for sale days
Use the "Discount you plan to give" field when you know a product will be on sale, like 9.9, 11.11 or 12.12. The calculator sets the list price so you still hit your target after the discount. If the result looks too high to compete, that's a sign to skip the discount or pick a different product for the campaign.
Frequently asked questions
How do I compute my selling price on Shopee?
Start from your cost per item and your packaging and other costs per order. Pick a target margin, then divide your total cost by (1 − fee rate − target margin). This calculator does that for you with Shopee's actual fee rules, including fee caps.
What's the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. A 50% markup equals a 33.3% margin.
Why does the price differ between platforms?
Each platform charges different fees, so you need a slightly different price on each to keep the same margin. The table under the calculator shows the price for all three.
Why does it say "No price works"?
Your target margin plus the platform's percentage fees adds up to 100% or more, so no price can reach it. Lower the target.