Product Pricing Calculator
Find the selling price that hits your target profit margin — after fees, refunds, shipping, and costs — verified to the cent, not just estimated from a formula.
Last reviewed August 18, 2026
How to use this calculator
- Enter your Target Profit Margin, Product Cost per Unit, and Average Units per Order — the three required fields.
- Fill in any fees, shipping, packaging, refund rate, or other costs that apply. Everything else can stay blank — blank is treated as $0 or 0%.
- Press Calculate.
- Check the Recommended Selling Price first, then review the detailed breakdown to see exactly how it was built.
- This calculator doesn't include an advertising cost field. If you want to know how much ad spend a given price can support, use the Break-Even ROAS Calculator once you have a price in mind.
How the calculation works
Gross Revenue = (Price per Unit x Units per Order) + Customer Shipping Revenue
Estimated Refunded Revenue = Refund Rate x Product Revenue
Expected Net Revenue = Gross Revenue - Estimated Refunded Revenue
Total Expenses =
Product Cost + Actual Shipping Cost + Packaging
+ Platform Fee + Payment Processing Fee
+ Other Variable Cost + Allocated Overhead
Expected Profit = Expected Net Revenue - Total Expenses
Achieved Profit Margin = Expected Profit / Expected Net Revenue
Recommended Price solves for the price where:
Achieved Profit Margin >= Target Profit MarginPrice appears on both sides of this relationship — it drives Product Revenue, which drives Gross Revenue, which drives the percentage-based Platform Fee and Payment Processing Fee, which in turn affect Expected Profit. This calculator solves that relationship algebraically for the price, rounds the result up to the nearest cent, and then re-checks it using the exact same rounded, cent-by-cent transaction math a real sale would use. If cent-level rounding means the initial price falls short, the calculator adjusts the price upward and verifies each candidate using the same rounded transaction calculations until it finds a price that meets or exceeds your target — it never hands back a price based only on the underlying formula without checking it.
Platform and payment processing fees are calculated on Gross Revenue (product revenue plus any customer-paid shipping) — this calculator's assumption, not a universal marketplace rule. Enter the percentages that match your own platform and payment provider.
Profit margin vs. markup
These two numbers are easy to confuse, and mixing them up is a common pricing mistake — they are never the same percentage except when both are 0%.
Profit Margin is profit as a percentage of revenue: Profit ÷ Revenue. It answers “of every dollar a customer pays, how much do I keep?” This is the number you set as your target in this calculator, and the number shown as Achieved Profit Margin in your results.
Markup is the same profit expressed as a percentage of cost instead: (Price − Cost) ÷ Cost. It answers “how much did I add on top of what I paid?” This calculator shows it only in the detailed breakdown, as extra context — it is not something you set a target for.
A 50% profit margin requires a 100% markup, not a 50% markup. At a 50% margin, profit equals half of revenue — which means cost equals the other half of revenue, so the price must be exactly double the cost. Markup will always be a larger percentage than margin at any profit level above 0%, and the gap widens as margin increases.
Worked example
A seller wants a 30% target profit margin, selling a product with a $9.75 unit cost, averaging 2 units per order. Customers pay $5.99 for shipping, which actually costs the seller $6.50, plus $1.10 in packaging. The platform charges an 8% fee, payment processing is 2.9% + $0.30, the estimated refund rate is 4%, and there's $0.50 in other variable cost per order.
- Recommended Selling Price per Unit
- $21.64
- Product Revenue per Order
- $43.28
- Customer Shipping Revenue
- $5.99
- Gross Revenue
- $49.27
- Estimated Refunded Revenue
- $1.73
- Expected Net Revenue
- $47.54
- Total Expenses
- $33.27
- Expected Profit per Order
- $14.27
- Achieved Profit Margin
- 30.02%
- Markup on Product Cost
- 121.95%
- Break-Even Price per Unit
- $13.26
Assumptions and Limitations
- Platform and payment processing fees are calculated on Gross Revenue (product revenue plus customer-paid shipping revenue) — this calculator's assumption, not a universal marketplace rule.
- The estimated refund rate applies to Product Revenue only — customer-paid shipping revenue is assumed not to be refunded.
- Fee treatment after refunds varies by platform and payment processor. This calculator conservatively assumes fees are not recovered on refunded orders.
- The Recommended Selling Price is solved for and then verified against real cent-level rounding, so the achieved margin shown may be slightly above your target rather than exactly equal to it.
- Break-Even Price is a conservatively rounded and verified price that avoids a loss under these assumptions — it is not guaranteed to be the absolute lowest theoretically possible cent price.
- This calculator does not include an advertising cost field. Use the Break-Even ROAS Calculator to check how much ad spend a chosen price can support.
- Average Units per Order is treated as a fixed average — it does not model order-to-order variation.
- Sales tax is not modeled. Marketplace and payment-provider rules involving sales tax can vary.
- This is a target price based on your assumptions, not a demand forecast — it doesn't account for competitor pricing or whether customers will buy at this price.
- This calculator is for general informational purposes only and is not tax, financial, legal, or investment advice.
See our methodology for how we build, document, and review every calculator's formulas.
Frequently asked questions
How is this different from just adding a markup?
A flat markup ignores fees and refunds that scale with your price, so it systematically overstates your real margin. This calculator works backward from your target profit margin — after fees and refunds are subtracted — to the exact price that achieves it.
Why does my achieved margin show slightly above my target?
Prices only exist in whole cents, but margins are continuous percentages. The calculator rounds the algebraic price up to the nearest cent and verifies it against real, rounded transaction math — the nearest cent that clears your target is sometimes a hair above it, never below.
What does "No finite price" mean?
It means your combined fees and target margin add up to 100% or more of every incremental dollar of revenue — raising the price further never closes the gap, no matter how high you go. Try lowering your target margin, or reducing your fees and costs.
What does "Target is at the theoretical margin limit" mean?
It means the continuous math sits exactly on the boundary of what's achievable with these costs and fees — there's no price with any real safety margin above the target. A slightly lower target margin will resolve it.
Why is there no advertising cost field?
Advertising efficiency and pricing are separate decisions. Once you have a price in mind from this calculator, use the Break-Even ROAS Calculator to find the minimum ad efficiency you'd need to stay profitable at that price.
Should I include Average Units per Order if I only ever sell one at a time?
Enter 1. This field exists for sellers whose orders often include more than one unit, so per-order costs like shipping and packaging get split correctly across the units in that order.
Does this calculator guarantee customers will pay this price?
No. This is a target price based on your costs, fees, and desired margin — it doesn't account for market demand, competitor pricing, or whether customers will actually buy at this price. Treat it as a floor to price above, not a market prediction.
What is Break-Even Price?
A conservatively rounded price verified to avoid a loss under the same assumptions and costs — effectively the Recommended Price at a 0% target margin. It's shown for reference alongside your margin-targeted price.
This calculator finds the price you need to charge. The E-commerce Profit Calculator helps you check the profit you actually made on sales you've already made, and the Break-Even ROAS Calculator helps you find how much you can afford to spend on advertising once you've settled on a price.
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