Product Pricing Calculator
This calculator finds the selling price that gives you the profit margin you want after product, shipping, fees and marketing costs. Enter your costs and target margin; it returns the recommended price.
How to price a product
Price = total cost per order ÷ (1 − desired margin). Pricing from margin, not from a markup on product cost alone, makes sure advertising and fees are covered.
How to use the product pricing calculator (formula)
What each field means
- Product cost — Cost of one unit.
- Shipping cost — Delivery cost per order.
- Payment fee — Payment processing fee per order.
- Platform fee — Marketplace or platform fee per order.
- Marketing cost per order — Expected marketing cost per order.
- Desired profit margin — The net profit margin you want, as a percentage of the selling price.
Worked example
Using these numbers: product cost $20.00, shipping cost $5.00, payment fee $2.00, platform fee $1.00, marketing cost per order $12.00, desired profit margin 25%.
The recommended selling price is $53.33.
- Total cost per order: $40.00
- Expected profit: $13.33
- Markup on cost: 33.3%
What profit margin should I target?
Many ecommerce brands target 20–30% net margin after marketing. If your market is very price-sensitive, aim for at least 10–15% and grow AOV with bundles.
Tips to improve your result
- Price from margin, not markup — 30% markup is not 30% margin.
- Check competitor prices after calculating; position above them only with a clear reason.
- Re-price when your ad cost per order changes.
- Round to a psychological price point after calculating.
Frequently asked questions
How do I calculate a selling price from margin?
Divide your total cost per order by (1 − margin). For a 25% margin: price = cost ÷ 0.75.
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of price. A 50% markup equals a 33% margin.
Should advertising cost be part of product price?
Yes. If you sell through paid ads, the expected ad cost per order is a real cost of each sale.
How do I avoid underpricing?
Include every per-order cost and a realistic ad cost, then check the margin still holds if ad cost rises 20%.
You might also need
E-commerce Profit CalculatorNet profit and margin per order after product, shipping, fees and ads.
Want help improving these numbers?
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