ToolSphereToolSphere
Invoices · 100

Product Pricing Calculator

Calculate fee-adjusted target pricing, upward price increments and candidate margins without confusing residual profit with markup.

8
Daily Uses

8 of 8 free uses remaining today

Calculate a cost-based price floor for your chosen margin after entered costs and proportional selling fees. Compare a candidate price without confusing margin with markup.

Enter your business figures

Eligible product and landed costs for one represented net sold unit. Exclude fulfillment and fees entered separately.

Allocated pick/pack, delivery, expected unrecovered returns or other variable selling costs not in product cost or fees.

Allocate a per-order fixed charge to the represented unit. Do not charge a per-order fee once per item unless each is a separate order.

Your consistent allocation at a chosen sales volume. Not the entire period's fixed budget; changing volume changes the allocation.

Your assumption below 100%, applied only to net product price, not taxes or shipping collected. Not a published provider fee schedule.

User-chosen margin, not markup or an industry recommendation. Target margin plus the proportional fee must be below 100%.

Round the cost-based floor upward to a multiple of this positive increment, with at most four decimal places. Not a charm-price suffix.

After discounts/reversals and excluding collected taxes and duties. Enter 0 to examine a free/loss scenario, whose margin is undefined.

Each successful calculation uses one of this tool’s 8 daily free uses. Editing, resetting and invalid inputs use none. Your figures remain in your browser.

Worked example

Example output from the starting values. Enter your figures and press Calculate for your result.

Base costs before proportional fee
25.3 currency units
Theoretical cost-based target price
37.7049 currency units
Upward-rounded target price
37.71 currency units
Residual margin at rounded target price
30.009 %
Candidate modeled costs including proportional fee
26.605 currency units
Candidate residual after entered costs
18.395 currency units
Candidate residual margin
40.8778 %
Candidate markup on all modeled costs
69.1411 %
Candidate product-only gross margin
55.5556 %
Candidate target check
Meets the chosen residual-margin target under these assumptions

Calculate your figures to enable a brand-free CSV download.

Formula

Base cost B = product cost + other variable cost + allocated fixed transaction charge + allocated operating overhead. Fee fraction f = fee percentage ÷ 100; target margin fraction m = target percentage ÷ 100. Cost-based target price = B ÷ (1 − f − m), rounded upward to the selected increment. At candidate price P, modeled costs = B + Pf and residual = P(1 − f) − B. Residual margin = residual ÷ P × 100; markup on all modeled costs = residual ÷ modeled costs × 100. Product-only gross margin instead subtracts product COGS alone.

How to use this calculation

Base cost 20 + 3 + 0.30 + 2 = 25.30. With a 2.9% fee and chosen 30% residual margin, the theoretical price is 25.30 ÷ 0.671 = about 37.704918; the upward 0.01 increment gives 37.71. At a candidate price of 45, modeled costs are 26.605 and the residual is 18.395, giving about 40.8778% margin. In the accounting reference, cost 8 and price 10 give 20% gross margin but 25% markup: the denominators differ.

  • Use one currency and one net sold-unit basis. Product-only gross margin subtracts product COGS, while this target residual also subtracts the entered selling costs, fees and overhead allocation; it is not labelled gross margin. Margin divides by revenue; markup divides by costs. Overhead allocation depends on the planning volume and is not a break-even volume forecast or an accounting filing.
  • The fee model is an entered proportional rate on net product price plus an allocated fixed charge. Real providers may charge on taxes/shipping, apply tiers or round fees separately. Reflect discounts, returns and costs consistently without subtracting them twice. The retained fraction must be strictly positive; fee plus target margin at or above 100% cannot determine a unique finite target floor, including zero-cost indeterminate cases.
  • The rounding increment applies to the target price, not the candidate price. No intermediate cents rounding is assumed. Zero costs can produce a zero monetary floor, but a zero selling price has no defined percentage margin; choose a positive price to evaluate the target. Losses are valid. This is a cost-based planning floor, not a demand-optimized price, price change, tax calculation or guarantee of operating/net profit. Financing, income taxes and unentered costs are excluded.

Formula reference: AccountingCoach: Gross margin versus markup. General planning information, not a guarantee of business results.

Assess a bundle discount and its contribution margin

About cost-based target pricing and market limitations

Related Tools

View all

Amazon FBA Calculator

Calculate Amazon FBA fees, costs, and profit margins

Dropshipping Profit Calculator

Reconcile refunds, supplier recoveries, fulfillment and entered selling costs to calculate contribution and estimated operating profit.

Conversion Rate Calculator

Calculate session-based purchase conversion and compare percentage-point and relative changes with a matching period.

Shipping Rate Calculator

Compare three supplied shipping quotes including missing charges and packaging, with transit-day limits and an identical-shipment cost scenario.