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Product Pricing Calculator

Set a price with confidence. Enter your costs and a target net margin, then reverse-calculate a recommended selling price.

Inputs

Enter costs and your target net margin.

%
Net margin after all costs and fees (not gross margin).
$
%
Example: Amazon referral fee / marketplace fee.
%
Example: card processing fee on Shopify.
$
$
Tip: if you don’t run ads yet, set ad cost to $0.

How it works

This calculator reverse-calculates price from your target net margin. We treat COGS, shipping, and ads as fixed costs per order. Platform and payment fees are percent-based fees applied to revenue. The recommended price is the smallest price that satisfies your target margin after all costs and fees.

Formula

Fixed costs = COGS + Shipping + Ads
Fee rate = (Platform % + Payment %) / 100
Target margin rate = Target % / 100
Recommended price = Fixed costs / (1 − Fee rate − Target margin rate)
Net profit = Price − Fixed costs − (Fee rate × Price)
Net margin (%) = (Net profit ÷ Price) × 100

Example

Let COGS = $15, shipping = $5, ads = $10 (fixed costs = $30). Platform fee = 15%, payment fee = 2.9% (fee rate = 17.9%). If your target net margin is 20%, recommended price = $30 ÷ (1 − 0.179 − 0.20) = $48.31. At this price, the expected net margin is about 20%.

FAQ

Is this gross margin or net margin?

This is net margin—after fees, shipping, and ads. Gross margin only considers price minus COGS.

Does this include taxes?

No. Taxes vary by state and business setup, so this calculator excludes them for clarity.

What should I enter for ad cost if I don’t run ads yet?

Set ad cost to $0 to get a baseline price. Later, update it using your real CPA/Ad cost per order.

Why can’t it calculate a price?

If target margin + percent fees reach 100% or more, there’s no revenue left to cover fixed costs.

Which platforms is this for?

Amazon, Shopify, Etsy, or any platform where fees are a percentage of the selling price.

Should I round the recommended price?

Yes. Most sellers round to psychological price points (e.g., $49.99) and then re-check the margin.

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