Reseller Break Even Price, Net Profit, Profit Margin Calculators
Resell Genius is obsessed with data and the science behind reselling, so we created these reseller calculators just for you! These tools are based around reselling best practices to help you maximize your Poshmark, eBay, StockX, and Mercari profits. Using them will automatically calculate your break-even price, net profit, and net profit margin, so you don’t have to.
Click any of the buttons below to go directly to the reseller calculator you want. Otherwise, keep scrolling.
Break-Even Reseller Calculator
This reseller calculator will show you precisely what your break-even price is, and you only need to enter the price you paid for the item, your shipping costs (if applicable), and your tax rate. You can also modify the seller fee if you are selling on a platform other than Poshmark (the calculator defaults to Poshmarks 20% seller fee).
Why is Reseller Break-Even Price Important?
- The break-even price is important to understand when you are reselling because, at the very least, you don’t want to lose money on a sale.
- You most likely will need this info for your taxes (we are not tax advisors, so please consult a tax professional about anything tax related).
- It helps you price your item when you know what price covers your costs, as every dollar higher than your break-even price is profit.
How to Calculate Break-Even Price
Our break-even Reseller Calculator is based on the equation above. It also will allocate only the shipping costs which is attributable to that individual item. If you purchased the item in person and did not pay for shipping, just ensure the box remains unchecked for “did you pay for shipping.” If you have any questions about how to use this calculator, please leave a comment at the bottom of the page.
Net Profit and Profit Margin Reseller Calculator
Whats the Difference Between Net and Gross Profit?
Please read the official definitions by clicking the “+” next to each box below. We like to calculate these individually on each sale, but you can also calculate these for your entire business (which is what retailers do).
- Gross Profit is the amount of money that remains after deducting the cost of goods sold (COGS) from the revenue earned from the sale. In other words, it is the profit earned before deducting other expenses such as shipping, taxes, and fees. The formula for calculating Gross Profit is Revenue – COGS.
- Net Profit is the amount of money that remains after deducting all expenses, including COGS, shipping, taxes, fees, and any other expenses associated with the sale. The formula for calculating Net Profit is Revenue – COGS – Expenses.
Net Profit Margin
- Net Profit Margin % is the percentage of the revenue earned that is left over after deducting all expenses. It is a measure of profitability and is calculated by dividing the Net Profit by the Revenue and multiplying the result by 100. The formula for calculating Net Profit Margin % is (Net Profit / Revenue) x 100. For example, if you sold an item for $100, and after deducting all expenses, you earned a net profit of $20, your net profit margin would be (20/100) x 100 = 20%.
To keep it simple, we use the following single-sale definitions in our calculations.
Gross Profit = The Sales Price, minus your Total Cost Paid.
Net Profit = The Sales Price, minus your Total Cost Paid, minus the Platform Fees
Net Margin = Displayed as a % = Net Profit / Sales Price * 100
Disclosure: Our Profit Calculators are NOT intended as tax, financial, or business advice; they are individual single-item calculators only and do not include any income tax or other business taxes or fees that you may or may not be required to pay to the government or IRS or other institution. When you look at your business holistically, you should consider those factors and consult a tax advisor, CPA, attorney, and Financial Advisor. Everyone’s tax situations are unique, and we are not tax or financial advisors, so we have not included any taxes you may owe at the end of the year in these calculators. Again, these are simply for informational purposes about a single-item sale.
In reality, you should focus on the “Net” Profit because that is the most accurate measurement of your Profit, and in doing so, you should be subtracting your total expenses, not just the platform fees we are removing.