Price from cost, margin & fees. The Product Pricing Calculator takes product cost per unit, shipping and handling absorbed per unit, target gross margin, marketplace and payment fees as a share of price and returns selling price plus gross profit per unit, fees per unit, equivalent markup on cost. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Pricing and sales metrics decide how much of the value you create you actually keep. Test price changes against margin, not volume alone, and measure the pipeline consistently so forecasts can be trusted. Use the worked example below to check the maths against your own figures.
How the Product Pricing Calculator works
Fees taken as a percentage of the price must be built into the price itself, which is why dividing rather than multiplying is needed. The result is the price that leaves your target margin after fees.
Worked example
With the example values (product cost per unit of $20, shipping and handling absorbed per unit of $5, target gross margin of 50%, marketplace and payment fees as a share of price of 10%), the selling price is $62.50; gross profit per unit $31.25, fees per unit $6.25, equivalent markup on cost 150%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is selling price calculated?
price = (cost + shipping) ÷ (1 − target margin − fee %).
Which figures do I need?
Product cost per unit, shipping and handling absorbed per unit, target gross margin, marketplace and payment fees as a share of price. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Should I test a price change before rolling it out?
Yes. Model the margin impact here first, then test on a segment or product line and measure volume and margin before applying it everywhere.
