Use the Reverb Fee Calculator to accurately determine your net profit after all selling fees, including the Reverb Selling Fee and Payment Processing Fee, are deducted from your total sale.
Reverb Fee Calculator
Reverb Fee Calculator Formula
Total Rate (R) = Reverb Fee Rate (R_sell) + Payment Rate (R_proc)
Fee Subject to Rate (F_rate) = A * (R_sell / 100 + R_proc / 100)
Total Fees (F_total) = F_rate + Fixed Payment Fee (F_fixed)
Net Payout (N) = A – F_total
Reverse Calculation (Solving for P):
Sale Price (P) = (Desired Net Payout + F_fixed – S) / (1 – (R / 100))
Formula Sources: Reverb Seller Fees Guide, Payment Processor Fee Structure
Variables
- Sale Price (P): The price you list your gear for.
- Shipping Charged to Buyer (S): The shipping cost collected from the buyer.
- Reverb Selling Fee Rate (R_sell): The percentage charged by the marketplace on the total sale amount.
- Payment Processing Rate (R_proc): The percentage charged by the payment service (e.g., PayPal, Reverb Payments) for processing the transaction.
- Fixed Payment Fee (F_fixed): A small, fixed monetary amount added to the processing fee (e.g., $0.25).
- Desired Net Payout (N): The specific amount of money you wish to receive after all fees are deducted (used for reverse calculations).
What is the Reverb Fee Calculator?
The Reverb Fee Calculator is an essential tool for musicians and sellers who use the Reverb marketplace to buy and sell new, used, and vintage musical instruments. When you sell an item, Reverb collects two primary types of fees that directly impact your final profit: the Reverb Selling Fee and the Payment Processing Fee. Without accurately calculating these costs, sellers often overestimate their net returns.
This calculator simplifies the complex fee structure by aggregating the total sale amount (item price plus shipping) and applying both the percentage-based selling fee and the payment processing charges (which often include a small fixed amount). By providing these inputs, the calculator instantly shows your net profit, total fees paid, and provides detailed steps for verification.
Understanding your fees upfront allows for better inventory management, competitive pricing strategies, and informed purchasing decisions for future gear. It is highly recommended that sellers use this tool before listing any item to ensure the listing price covers all costs and achieves the target profit margin.
How to Calculate Reverb Fees (Example)
Assume an item listed for $800.00 with $50.00 shipping charged to the buyer, using a 5% Reverb Fee and a 2.9% + $0.25 Payment Processing Fee:
- Calculate Total Sale Amount (A): $800.00 (Price) + $50.00 (Shipping) = $850.00.
- Calculate Reverb Selling Fee (F_sell): $850.00 $\times$ 5% = $42.50.
- Calculate Payment Processing Fee (F_proc): ($\$850.00 \times 2.9\%$) + $0.25 = $\$24.65 + \$0.25 = \$24.90$.
- Calculate Total Fees (F_total): $42.50 (F\_sell) + $24.90 (F\_proc) = $67.40.
- Calculate Net Payout (N): $850.00 (A) – $67.40 (F\_total) = $782.60.
Frequently Asked Questions (FAQ)
- What is the typical Reverb Selling Fee rate? The Reverb Selling Fee is typically 5%, but sellers should always verify the latest rate on the official Reverb website, as this can change based on promotions or country.
- Does the Reverb Fee apply to the shipping cost? Yes, the Reverb Selling Fee and the Payment Processing Fee are calculated on the *entire* transaction amount, which includes both the item’s sale price and the shipping charges paid by the buyer.
- Why did my fees increase recently? Fee changes are usually due to updates in the marketplace’s terms or changes in the payment processor’s rates (e.g., changes in the fixed fee or percentage). Always check the calculation inputs against the current marketplace policy.
- Can I calculate the price I need to charge to hit a specific profit? Yes, this calculator supports reverse calculation. By inputting your desired net payout, along with the standard rates and shipping cost, the tool determines the minimum sale price you must set.