Two percentages with different denominators
Markup measures the surplus after the included costs as a share of production cost. Margin measures that surplus as a share of the selling price. In this model, both are calculated after the entered payment fees, and production cost already includes the labour and depreciation you entered. These are model-specific planning ratios, not guaranteed accounting net profit.
A simple example without fees
A cost of 100 with 30% markup gives a selling price of 130. The surplus is 30, but the margin is 30 / 130 = 23.08%. To target a 30% margin, the unrounded selling price is 100 / 0.7 = 142.8571, rounded up to 142.86 for a two-decimal currency.
Payment fees change the equation
Let C be production cost, a the fee as a fraction of selling price, b the fixed fee for the entire order, m the target margin and u the markup on production cost. The calculator solves for selling price rather than subtracting fees after a price has already been chosen.
Margin pricing: price = (C + b) / (1 − a − m)
Markup pricing: price = (C × (1 + u) + b) / (1 − a)
For a cost of 100, 30% markup, a 10% fee and a fixed fee of 5, the quote is (130 + 5) / 0.9 = 150. Fees total 20 and the surplus is 30. This is why a simple cost × 1.3 calculation would miss the chosen return.
What the model does not promise
A target margin is an input, not a recommended market price. Returns, chargebacks, tax effects, sales effort and general overhead are not automatically included. Some payment providers charge on tax-inclusive amounts or use tiered rules; enter an effective estimate only when the assumptions match, otherwise use a separate calculation.
Rounding
The quote for the entire order is rounded upward to the currency’s minor unit. Actual displayed margin is recomputed after that rounding. Unit-price display is for comparison only; use the total when preparing an invoice or allocating rounding across line items.