Start with the decision
A 40% target margin and 5% commission do not leave 60% to cover costs. Together they reserve 45% of revenue, leaving 55%. This matters when you work backward from costs to a quote.
Worked calculation
Using 10 cost and 0.25 fixed allocation, a 5% fee with 40% target gives 18.64. If the fee becomes 15% with the same target, the price becomes 10.25 divided by 0.45, rounded upward to 22.78.
Test commission sensitivity
For a target contribution margin, the available share of revenue is one minus the target share and percentage charges. Subtract fixed allocations from the revenue side before solving, and confirm that the remaining share is positive.
Distinguish the fee as a share of selling price from a margin target, which is also measured against revenue. Add both shares before calculating the portion available for cost and fixed fees. If you instead mark up cost by a percentage, you get a different result; label the measure in the quote worksheet.
Check the changed-cost scenario
Check the denominator before trusting a reverse-price result. As the fee and target approach 100% combined, the price rises sharply; at or above 100%, there is no finite positive price in this model. That is a signal to revisit the terms, cost structure or required return rather than hide the conflict with rounding.
| Input or result | Value |
|---|---|
| Cost plus fixed allocation | 10.25 |
| 5% fee + 40% margin target | 55% available |
| Required price at 5% fee | 18.64 |
| 15% fee + 40% margin target | 45% available |
| Required price at 15% fee | 22.78 |
At 22.78 with a 15% fee, modeled contribution is 9.113, slightly above 40% of price. These are contribution margins, not markup percentages. A 100% combined fee and target has no positive share left to cover costs.
Use the example with your own inputs
If the fee plus target reaches 100%, the model has no positive denominator. Change the assumptions; a spreadsheet cannot make an impossible combination viable.
Wholesale Price & Margin Calculator | PourMarginScope and source checks
These are planning examples, not actual seller results. Keep currency, tax basis and cost allocation consistent. Enter your own figures and reconcile with your records; tax, demand, refunds and unlisted business costs can change the outcome.
See more pricing examples and assumptions.