Selling price calculator

How to use

Pricing starts from cost and arrives at the selling price that delivers the margin you want. When fees are charged on the sale — cards, marketplaces, commission — they come out of the price too, which is why the cost is divided by (1 − margin − fees) instead of simply marked up.

• Set the price of a new product with a margin you chose.
• Model the effect of a card or marketplace fee before publishing a price.
• See how much profit survives every fee on the sale.

1. Add everything the product costs before it reaches the customer: purchase, freight, packaging.
2. Enter the desired margin as a percentage of the selling price.
3. Enter the variable fees as a percentage and any fixed fee per sale.
4. The result shows the suggested price, profit, total fees and the effective margin.

Formula

Price = (cost + fixed fee) ÷ (1 − margin − variable fees)

Example

A cost of 60 with a 40% target margin gives 100. With a 30% margin and a 10% fee the price is still 100: 60 ÷ (1 − 0.30 − 0.10) = 100.

Limitations

• The margin must be below 100% and, together with fees, below 100% — beyond that no price covers the sale.
• Sales taxes can be entered as a variable fee, but rates specific to your business should be confirmed with an accountant.

Frequently asked questions