Product Pricing Calculator
Find a profitable selling price from your product cost, fees, advertising and target margin — with fees as fixed amounts or percentages, and conservative-to-premium pricing scenarios.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Recommended selling price
Enter your product and other fixed costs to calculate a selling price.
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.
Why you cannot just add a markup on marketplaces
The most common and expensive pricing mistake on marketplaces is treating percentage fees as if they were fixed costs. If a platform takes 15% of the sale and you simply add your desired margin on top of product cost, the fee quietly eats into that margin, because the fee grows with the price you set. The only correct way to handle costs that scale with price is to solve for the price simultaneously — which is exactly what the required-price formula does by placing all the percentage costs and your target margin together in the denominator. Get this wrong and you can believe you are earning 20% while actually earning far less, a gap that compounds across every unit you sell.
Worked example
Take a product costing $20 to make, plus $5 shipping and $3 in packaging and handling — $28 of fixed cost per unit. Add a 10% marketplace fee and 15% for advertising (25% of the price in percentage costs), and a target profit margin of 20%. The required price is $28 ÷ (1 − 0.25 − 0.20) = $28 ÷ 0.55, or about $50.91. Sell at that price and, after the marketplace and ad fees take their 25% and you cover the $28 of fixed cost, exactly 20% of the price remains as profit. Price it at a naive “$28 plus 20%” of $33.60 instead, and the fees would push you into a loss — the difference the correct formula protects you from.
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.
Frequently asked questions
How do you price an e-commerce product?
Add up your costs, decide a target profit margin, and solve for the price that delivers it. When some costs are percentages of price (fees, ads), use: price = fixed costs ÷ (1 − variable cost % − desired margin %).
What is cost-plus pricing?
Cost-plus pricing adds a fixed markup to your cost. It is simple but ignores percentage fees and target margin on the selling price, which can lead to underpricing on marketplaces.
What is margin-based pricing?
Margin-based pricing sets the price so that profit is a chosen percentage of the selling price. This calculator uses margin-based pricing and correctly handles percentage fees.
How do marketplace and advertising fees affect price?
Because they are percentages of the selling price, they must be solved for simultaneously with your margin. The calculator separates fixed costs from percentage costs so the required price is accurate.
Should I price based on cost or on value?
Cost-based pricing ensures you never sell below a profitable floor, and this calculator gives you exactly that floor. But the ceiling is set by value — what the product is worth to the customer and what competitors charge. The best approach uses cost-based pricing as a safety check and value-based thinking to capture the full price the market will bear. A product that solves an expensive problem can often command far more than cost-plus would suggest, while a commoditised item is disciplined by competitors regardless of your costs.
How should I handle returns and refunds in pricing?
Returns are a real cost that many sellers forget to price in. A 10% return rate means that, on average, one in ten sales generates no revenue but still incurs shipping, handling and often unsellable stock. If you ignore this, your true margin is lower than it appears. Building an expected return rate into your cost assumptions — effectively spreading the cost of returns across all units — produces a price that stays profitable across the whole batch, not just on the orders that stick.
Why is a small price change so powerful for profit?
Because a price increase falls almost entirely to the bottom line. If your costs stay the same, raising the price by a few percent adds that amount directly to profit per unit — often a much larger percentage gain in profit than in price. This is why pricing is described as the highest-leverage lever in a business: a 5% price rise can lift profit far more than a 5% cut in costs or a 5% rise in volume, and it requires no extra spending to achieve.
Related calculators
E-commerce Profit
Calculate net profit, margin, break-even price and maximum ad spend for a product.
ROAS
Calculate return on ad spend and estimate profit after advertising.
Break-Even ROAS
Find the minimum ROAS that covers your costs, from your contribution margin.
Contribution Margin
Work out contribution margin per unit, % and break-even units.
Gross Margin
Calculate gross profit and gross margin, or solve in reverse.
Discount
Work out sale price, savings and true stacked-discount percentages.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Pricing recommendations are estimates. Actual profitability depends on fees, returns, taxes, overhead and market conditions.