Calculate selling price
Enter your cost and target margin to get the selling price in seconds.
From cost to ideal price — fast, complete, and with a scenario simulator
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.
Enter your cost and target margin to get the selling price in seconds.
Enter your cost and the price you currently charge to see your real margin and whether it's at your target level.
Enter all your product costs and the variable expenses of the sale to calculate the minimum price needed to hit your real profit margin.
Fill in the product cost and target margin to calculate.
See how much to charge to hit different margin targets, using the costs and expenses from the calculator above.
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:
SP = Cost ÷ (1 − Margin)
SP = COGS ÷ (1 − Exp% − Margin%)
Margin = (SP − COGS − Exp) ÷ SP
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 |
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.
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.
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.
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.