How to calculate resale profit after fees and postage
The sale price is only the starting point. Subtract what you paid for the item and the costs of selling it to see what that sale leaves before tax.
The calculation
Profit before tax = sale receipts − item cost − selling fees − postage − packaging − other costs allocated to the sale.
Include any delivery money you receive in your receipts, then record the delivery cost you actually pay. If a platform handles delivery without paying that money to you or charging you for it, do not add it as your own income or cost.
Check the fee breakdown for your own account and transaction. Fee rates, fixed charges and what the fee applies to can vary. The example below uses an illustrative fee, not a quoted eBay, Vinted or Depop rate.
A £15 sale with £3.25 postage
| Receipt or cost | Amount |
|---|---|
| Sale receipts | £15.00 |
| Item purchase cost | £5.00 |
| Postage paid by the seller | £3.25 |
| Packaging | £0.50 |
| Illustrative fee: 10% of £15 plus £0.30 | £1.80 |
| Total costs | £10.55 |
| Profit before tax | £4.45 |
Leave out postage and the same sale appears to make £7.70. Recording the £3.25 you paid brings the result back to £4.45.
This example includes no other business overheads. Allow for any other costs that apply to you. A profit figure for one item is not your annual taxable profit or tax bill.
Keep a record for each item
Start with an item code, description, purchase cost, sale date, sale receipts, fees, postage and packaging. Save the receipts and fee statements so you can check the figures later.
When a platform pays you after deducting its fees, avoid subtracting those fees twice. Either start with the gross sale receipt and record the fees separately, or reconcile the net payout to those gross figures.
Margin and return on cost
In this example, profit margin is £4.45 ÷ £15 × 100 = 29.67%. It shows how much of the sale receipts remains after the costs shown.
Return on the £5 item purchase cost is £4.45 ÷ £5 × 100 = 89%. These percentages use different denominators. Neither includes a value for your time or any costs left out of the example.
Use the Excel calculator
SheetKind’s Profit & Pricing Pack includes two Excel workbooks: a profit calculator with a 500-row sales log, and a product pricing calculator. Enter your own costs and fee rates to check profit, margin, break-even and target selling prices.
£4.99 for a one-off download, plus any applicable checkout tax. Excel software is not included.
See the workbook previewsCalculations shown are before tax. Fees are entered manually. See the product page for capacity and software details.