Calculator Inputs
Example Data Table
| Market | Price | Duty % | Tax % | Gateway % | Shipping Cost | Estimated Net Margin |
|---|---|---|---|---|---|---|
| Canada | USD 120.00 | 8.00 | 5.00 | 3.20 | USD 18.00 | 21.40% |
| United Kingdom | USD 120.00 | 6.00 | 20.00 | 3.40 | USD 22.00 | 13.85% |
| Germany | USD 120.00 | 4.00 | 19.00 | 3.10 | USD 24.00 | 14.72% |
| Australia | USD 120.00 | 5.00 | 10.00 | 3.50 | USD 20.00 | 18.96% |
Formula Used
Net Merchandise Value = (Selling Price × Quantity) − Discount
Duty Amount = (Net Merchandise Value + Merchant Shipping Cost) × Duty Rate
Tax Amount = (Net Merchandise Value + Merchant Shipping Cost + Duty Amount) × Tax Rate
Gateway Fee = (Customer Checkout Total × Gateway %) + Fixed Fee
Platform Fee = Net Merchandise Value × Marketplace Fee %
FX Cost = (Customer Checkout Total × FX Rate) × FX Markup %
Total Merchant Cost = Product Cost + Fulfillment + Absorbed Duty/Tax + Gateway + Platform + Reserve + FX Cost
Net Profit = Customer Checkout Total − Total Merchant Cost
Net Margin % = (Net Profit ÷ Customer Checkout Total) × 100
How to Use This Calculator
- Enter selling price, quantity, and product cost.
- Add shipping charged to the customer and actual shipping cost.
- Enter expected duty, tax, FX markup, and payment fees.
- Choose whether the merchant or customer pays border charges.
- Include insurance, reserves, marketplace fees, and other handling costs.
- Press Calculate Fees to show the result above the form.
- Use the CSV or PDF buttons to save the breakdown.
Why Cross Border Fee Planning Matters
International orders often look profitable until fees stack up. Payment processing, settlement spreads, import charges, and reserve holds can reduce margins quickly. This calculator helps sellers price with more confidence by showing both merchant costs and customer landed costs in one place.
It is especially useful for ecommerce teams comparing prepaid duty models against delivery duty models. Sellers can test pricing, observe how checkout totals change, and protect contribution margin before expanding into new markets.
FAQs
1. What does this calculator estimate?
It estimates checkout total, duty, tax, gateway fees, FX costs, merchant costs, landed cost, take-home payout, break-even price, and net margin.
2. Should duty and tax be prepaid?
Prepaying can improve customer experience and reduce surprise charges. However, it also shifts border costs to the merchant, which may lower margins.
3. Why include FX markup?
Many gateways and marketplaces apply currency conversion spreads. Including FX markup makes profitability estimates more realistic for international payouts.
4. What is refund reserve percentage?
It models funds set aside for refunds, disputes, chargebacks, or return risk. This protects planning when cross border return rates are higher.
5. Does customer shipping affect profit?
Yes. Shipping charged to the customer increases checkout revenue, while actual shipping cost increases merchant expense. The difference changes contribution margin.
6. Can this help with market expansion?
Yes. It helps compare countries by changing duty, tax, shipping, and payment assumptions so teams can see where pricing remains healthy.
7. What if the customer pays duties on delivery?
The calculator moves border charges from merchant cost to customer landed cost. This keeps checkout lower but may create delivery friction.
8. Is break-even price per unit useful?
Yes. It shows the minimum effective selling price per unit needed to cover all modeled costs in the selected international order setup.