How reverse pricing works
Referral fees and ad spend scale with the price, so you cannot just add them to your costs. Dividing your fixed per-unit costs by one minus all the percentages gives the exact price that leaves your target margin after everything. The receipt also shows the break-even price — the floor below which every unit loses money.
Frequently asked questions
Why is the required price so high?
Because 15% fees + 8% ads + 25% margin means only 52% of the price is left to cover fixed costs. Lower the target margin or trim ad spend and watch the price fall.
What if the calculator says the target is impossible?
When fees, ads, and target margin add to 100% or more there is no price that works — no amount of revenue leaves anything for costs. Reduce one of the percentages.
Should product cost be the invoice price or landed cost?
Landed cost — use the landed cost calculator first so freight and duty are included.