My Amazon listing price is shown including VAT; how much revenue is mine before fees?
Extract the tax from the listing price at the rate that applies to your sales and you have your net revenue per sale before fees. A listing price of 172.5 with 15 entered as the rate gives net revenue of 150. Then subtract the fees shown in your settlement report to see what is left for your cost and profit.
Why the listing price is not your revenue
On marketplaces that show tax-inclusive prices, the number the customer sees is what they pay in full, but it has three layers: the tax, then the marketplace fees, then what is left for you. Plenty of new sellers compare the listing price straight with their cost, conclude the profit is large, and are then surprised by the payout.
The right approach is to peel the layers off one at a time, starting with tax, because it was never part of your revenue.
Layer one: the tax
- Open the VAT calculator and choose Extract tax from a gross amount.
- Enter the listing price of 172.5 and the rate you have confirmed applies to your sales; this example uses 15.
- Result: net revenue 150, tax 22.5.
The rate is your responsibility. The tool knows nothing about the marketplace's tax setup or your own position, so never infer the rate from a competitor's price. For comparison, a listing price of 157.5 with 5 entered as the rate gives the same net of 150, while the same 172.5 with 5 entered gives 164.29. That gap is big enough to flip your profit sums.
Layer two: the fees
With the tax removed, open the settlement report for a real order and look at what was deducted: the referral fee, any fulfilment or storage fees if you use the marketplace's services, and anything else. Subtract them from 150. We quote no fee percentages here, because they vary by category and service and change over time; your own report is the only reliable source.
One catch: if the fees themselves carry tax, split that out as well, and let your accountant decide how it is treated.
The last layer: are you making money?
What remains after tax and fees has to cover the product cost and your profit. Put it with your cost into the Profit margin calculator to see the real margin. If it is thin, work out a new pre-tax price in the Selling-price calculator using the fee percentage from your report, then add tax to it to find the listing price you need.
Common questions
Do I work this out for every order?
One typical order per product is enough, repeated whenever the price or fees change.
Does the calculator connect to my seller account?
No. It is a standalone calculator in your browser, and you type the figures in yourself.