CAL-004
Selling Price Calculator
Most pricing calculators ignore the fees that come off after the sale. This one works backwards from the margin you want, accounting for extra costs and the percentage your payment processor takes.
- Free
- No signup
- Private · runs locally
How to calculate a selling price
- Enter the product cost.
- Add any additional per-unit costs - packaging, inbound shipping, labelling.
- Enter the payment processing fee percentage that applies to the sale.
- Enter the profit margin you want to achieve. The suggested selling price appears immediately.
Why you cannot just add the margin on top
Margin is measured against the selling price, and the payment fee is charged on the selling price too. Both depend on the answer, so the price has to be solved for rather than added up.
The formula used here is: Price = Total cost ÷ (1 − Margin ÷ 100 − Fee ÷ 100). If you want a 40% margin on $30 of cost with a 3% fee, the price is 30 ÷ 0.57 = $52.63, not $50.
If the margin and fee together reach 100%, no price can work - the calculator will tell you rather than return a nonsense number.
Frequently asked questions
Should additional costs include shipping to the customer?
Only if you pay for it and do not charge for it separately. Use the free shipping calculator to see what absorbing delivery does to your margin.
Does this include sales tax or VAT?
No. Work in net prices here and add tax afterwards, since tax is collected on behalf of the tax authority rather than earned.
What margin should I target?
High enough to cover your overheads and still leave a profit. Work out your monthly fixed costs, divide by your expected unit volume, and make sure your gross profit per unit clears that figure.