Three modes on one page: a quick calculation from cost and margin, a check on whether a price you're already charging is enough, and the full calculator with all costs, expenses, taxes and a price simulator for multiple margins.

Calculate selling price

Enter your cost and target margin to get the selling price in seconds.

Selling price
Profit
Equivalent markup

Check if the price is enough

Enter your cost and the price you currently charge to see your real margin and whether it's at your target level.

Status
Current margin
Current profit
Price to hit target

Full Selling Price Calculator

Enter all your product costs and the variable expenses of the sale to calculate the minimum price needed to hit your real profit margin.

Direct product costs ($)
Variable sale expenses (% of selling price)
Fees for:

Fill in the product cost and target margin to calculate.

Price Simulator by Margin

See how much to charge to hit different margin targets, using the costs and expenses from the calculator above.

Fill in the fields in the Full Calculator above to activate the simulator.

How to Calculate Your Selling Price Correctly

The most common pricing mistake is setting the selling price based only on the competition, without knowing whether it covers all your costs and still generates a profit. The correct method has four components:

Simple formula

SP = Cost ÷ (1 − Margin)

With variable expenses

SP = COGS ÷ (1 − Exp% − Margin%)

Verification

Margin = (SP − COGS − Exp) ÷ SP

The four components of your selling price

  1. COGS — Cost of Goods Sold
    Product + packaging + inbound freight + allocated fixed costs. Everything you spend before selling.
  2. Variable sale expenses
    Marketplace commission, card/gateway fee, shipping subsidized for the customer, taxes on revenue.
  3. Target net profit margin
    The percentage of the selling price that will represent real profit — after paying everything above.
  4. Market validation
    Compare the calculated price with the competition. If it's much higher, review your costs or reposition the product.
Watch out: Applying a 30% margin to a cost that doesn't include packaging, shipping or allocated fixed costs results in a much lower real profit — or even a loss. Always add up all costs before calculating your price.

Examples by Sales Channel

For the same product with a cost of $45.00 (product + packaging + inbound freight) and a target margin of 25%:

Sales channel Variable fees Divisor Suggested price Profit
eBay 13% + 3% = 16% 1 − 0.16 − 0.25 = 0.59 $76.27 $19.07
Etsy 13% + 2.5% = 15.5% 1 − 0.155 − 0.25 = 0.595 $75.63 $18.91
Amazon 12% + 2.5% = 14.5% 1 − 0.145 − 0.25 = 0.605 $74.38 $18.60
Own store (e-comm.) 2.8% gateway 1 − 0.028 − 0.25 = 0.722 $62.33 $15.58
Physical store 0% 1 − 0 − 0.25 = 0.75 $60.00 $15.00
Practical takeaway: For the same product and the same 25% margin, you need to charge $76.27 on eBay but only $60.00 in a physical store. If you charge the same price across every channel, your marketplace margin drops to zero — or turns into a loss.

Mistakes That Quietly Destroy Your Margin

Not including allocated fixed costs

Rent, salaries and utilities exist even when there are no sales. If they aren't included in the price, your gross margin won't cover the month's bills.

Ignoring the return rate

In e-commerce, return rates of 3% to 8% are common. Each return absorbs the product cost plus shipping (both ways). Add 2% to 5% as a variable expense.

Forgetting sales tax

Tax rates vary by state and revenue tier, and can range from roughly 4% to 19% depending on your local tax authority. If you move into a higher bracket, a price that used to cover your costs can start generating a loss.

Using markup and calling it margin

A 40% markup on cost results in a 28.6% margin, not 40%. Anyone using this shortcut may be working with a margin 30% smaller than they think.