Cambridge China Bridge
Free tool

Resale margin calculator for online sellers

Work out what you keep from each sale of stock bought from China. Enter your landed cost, your selling price, your marketplace or payment fees, postage, other costs and the share of sales you expect to refund, and say whether you are VAT-registered. The calculator shows the profit per unit, the margin, the return on the landed cost and the lowest price at which a sale breaks even.

Your figures

Result per unit

Output VAT in the price
—
Net revenue after VAT
—
Marketplace or payment fees
—
Refund allowance
—
Total cost per unit
—
Profit per unit
—
Margin (% of net revenue)
—
Return on landed cost
—
Break-even selling price (incl. VAT)
—

Enter a landed cost and a selling price to see the result.

How the calculation works

  1. Output VAT = selling price × 20 ÷ 120 if you are VAT-registered, otherwise nothing
  2. Net revenue = selling price − output VAT
  3. Fees = selling price × fee percentage
  4. Refund allowance = net revenue × refund rate
  5. Total cost per unit = landed cost + fees + fulfilment + other costs + refund allowance
  6. Profit per unit = net revenue − total cost per unit
  7. Margin = profit ÷ net revenue; return on landed cost = profit ÷ landed cost
  8. Break-even price = the selling price at which profit per unit is zero, with the same fee and refund rates
  • A VAT-registered seller owes VAT on each sale, so part of a VAT-inclusive price is not revenue. At the 20% standard rate that part is 20/120 of the price. A seller who is not registered charges no VAT and keeps the whole price.
  • The tool uses the 20% standard rate. If your goods are zero-rated or reduced-rated, or you use a special VAT scheme, the VAT taken off here will not match what you owe.
  • Enter costs on the same footing as your VAT position. If you are VAT-registered, leave out VAT you can reclaim on your landed cost, fees and postage. If you are not, include it, because it is a cost to you.
  • The refund allowance assumes a refunded sale gives the price back to the buyer while the landed cost, fees, postage and other costs are still spent. If you can resell returned stock or marketplaces return part of the fee, enter a lower rate.
  • Fees are taken as a percentage of the selling price you enter. Fixed per-order charges can go in the other cost field.

Sources

Checked on 6 October 2026

  1. GOV.UK: VAT rates

The tool applies the GOV.UK standard VAT rate to the figures you enter. It holds no prices, marketplace fees, postage rates or refund rates of its own, and it does not cover income tax, corporation tax or special VAT schemes.

Questions about this tool

How do I work out the profit on a product bought from China?

Start from the landed cost per unit, which is the factory price plus freight, duty and any import VAT you cannot reclaim. Take output VAT off the selling price if you are VAT-registered, then subtract fees, postage, other costs and an allowance for refunds. What is left is the profit per unit.

Why does being VAT-registered change the margin?

A VAT-registered seller pays VAT on each sale to HMRC, so at the 20% standard rate a sixth of a VAT-inclusive price is not revenue. In return, the seller can reclaim VAT on costs such as import VAT. A seller who is not registered keeps the whole price but cannot reclaim VAT on costs, so those costs are higher.

What is the difference between margin and return on landed cost?

Margin is profit as a share of the net revenue from a sale. Return on landed cost is profit as a share of what you paid to get the unit into the UK, which shows how hard your stock money is working.

What does the break-even selling price tell me?

It is the price, including VAT where you charge it, at which profit per unit is zero with the same fee and refund rates. Below it each sale loses money. If fees and refunds together take the whole price, there is no break-even price.

Where do I get the landed cost from?

From your supplier's price, your freight quote and the UK duty rate for the product. The import duty calculator and the guide to understanding your landed price on this site show how to add them up.

Want a landed cost for a first order from China?

Tell us the product, quantity and destination. Our own staff in China verify factories, follow production and inspect before shipment. We reply the same working day to confirm receipt and arrange next steps.

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