Pricing Calculator
Set a price that covers cost, leaves room for margin, and still makes sense in the channel you actually sell through.
Need a walkthrough? Read the Pricing Calculator Guide.
Inputs
Results update liveBatch process pricing scenarios
Format: base cost, target margin, markup, strategy. For competitor checks: base cost, competitor price, competitive.
Pricing method
Use the result as a decision range, not a single magic price
Good pricing combines cost, target margin, demand, competitor context, and the real volume needed to make the offer work. This calculator gives the math baseline so you can pressure-test the business decision before launch.
Reference points
Methodology
- Start with all direct costs, including packaging, payment fees, fulfilment, and expected returns.
- Compare margin-based price against markup-based price so you know which target is driving the recommendation.
- Use the result with a break-even check before committing to ad spend, inventory, or a public price change.
Practical examples
- A $40 cost with a 45 percent margin target needs about $72.73 selling price before discounts.
- A $30 product discounted by 20 percent must still cover costs, transaction fees, and the margin target after the promotion.
- If competitor pricing is lower than your math-based price, the next move is usually cost reduction, bundling, or repositioning.
Common mistakes to avoid
- Do not confuse markup with margin. A 50 percent markup is not the same as a 50 percent margin.
- Do not ignore variable costs that scale with each order.
- Do not use the recommended price without checking whether the required volume is realistic.
Interpretation
What your result means
This is gross pricing only. If the margin looks fine but volume assumptions are unrealistic, check break-even before you launch. If the price lands above what the market will pay, cut cost first, then rerun the calculation.
Example
Worked example
A realistic scenario showing how the calculation guides a practical decision.
Say a product has a $46 base cost after purchase, packing, and shipping, and you want a 45% gross margin. The list price lands near $83.64, leaving about $37.64 before overhead.
That margin has to cover ads, returns, marketplace fees, and fixed overhead. If it does not, the next move is usually cost reduction—not a deeper discount.
Watch out
Common mistakes
- Leaving shipping, packaging, or payment fees out of base cost.
- Confusing markup with margin when setting a target.
- Using a competitor price as proof of profitability.
- Testing price without checking whether volume can support fixed costs.
Continue your analysis
Where this number takes you next
Each step builds on the result above.
Related tools
Adjacent decisions
Further reading
Guides
Trade-offs
Comparisons
FAQ
Frequently asked questions
How the calculation works and where its limits are.
What belongs in base cost?
Include every variable cost tied to a sale: product cost, packaging, shipping, marketplace fees, and payment processing if they scale with each order.
When should I use margin vs markup?
Margin expresses profit as a share of selling price. Markup expresses profit as a share of cost. They are related but not interchangeable.
Does this include taxes or overhead?
No. The result is gross pricing only. Fixed overhead, income tax, returns, and ad spend still need to fit inside the margin you leave.