Product Pricing Calculator

What is a product pricing calculator?

Pricing is the highest-leverage decision in e-commerce. This calculator works out the selling price you need to hit a target profit margin once product cost, shipping, packaging, payment and marketplace fees, advertising and returns are all accounted for — including the fees that are a percentage of the price.

How the pricing formula works

The trick is that some costs are fixed (product, shipping) while others are a percentage of the selling price (fees, ads). You cannot just add a markup — you have to solve for price:

• Required price = Fixed costs ÷ (1 − variable cost % − desired margin %)

The calculator separates fixed and percentage costs automatically, so the price it returns genuinely delivers your target margin after all fees.

Cost-plus vs margin-based pricing

Cost-plus pricing adds a markup to cost and is easy to get wrong on marketplaces, because it ignores percentage fees. Margin-based pricing — used here — sets profit as a share of the selling price and handles fees correctly. See the difference on the profit margin calculator (margin vs markup).

Scenario pricing

The calculator shows prices for conservative to premium margins (5%, 15%, 20%, 30%) along with the profit and the break-even ROAS at each price, so you can choose a price that is both profitable and realistic to advertise.

Example

A product costing $20 plus $5 shipping and $3 other costs ($28 fixed), with a 10% marketplace fee and 15% advertising, targeting a 20% margin, needs a selling price of about $50.91 (since 28 ÷ (1 − 0.25 − 0.20) = 28 ÷ 0.55).

Related calculators

Pair pricing with the ROAS and break-even ROAS calculators, check per-unit economics with contribution margin and gross margin, and model promotions with the discount calculator.