Product Pricing Calculator

How it works

1. Set your revenue goal — enter the monthly profit you want to make.
2. Enter your volume and costs — expected monthly sales and cost per unit; optionally add platform fees, payment processing, shipping, overhead and marketing costs.
3. Get your price — the calculator instantly shows the price you need to charge, your profit margin, and your break-even point.

The pricing formula behind the calculator

To find the right selling price, this calculator reverse-engineers from your revenue goal. First it determines how much revenue each unit must generate to hit your monthly target, adds your unit cost and any fixed costs per unit, then divides by the margin that remains after platform and processing fees are deducted.

The formula: Price = (Revenue Goal ÷ Units + Unit Cost) ÷ (1 − Platform Fee % − Processing %)

Concrete example: suppose you want $5,000/month in profit, expect to sell 200 units, and your product costs $12 to source. Your revenue-per-unit target is $25. Add the $12 unit cost and you need $37 before fees. With a 15% Amazon referral fee plus 2.9% payment processing (17.9% combined), divide $37 by 0.821 — the required selling price is roughly $45.07. Change any variable and the price updates instantly.

Markup vs. profit margin — they are not the same

Many sellers confuse markup and margin — both measure profit, but from different baselines, and mixing them up leads to systematic under-pricing.

Markup is calculated over cost: a $40 product with a 50% markup sells for $60. Margin is calculated over the selling price: that same $60 sale generates $20 profit, which is only 33.3% margin — not 50%. To achieve a true 50% gross margin you would need to price at $80 (doubling the cost).

A practical benchmark for e-commerce: aim for at least 30% gross margin after all product costs. Below that threshold, paid advertising on Facebook, Google, or TikTok typically consumes the remaining profit and makes the business unsustainable. Amazon FBA sellers generally need 40%+ to absorb referral and fulfillment fees before ad spend.

Platform fees cheat sheet

• Amazon FBA: ~15% referral + $3–5 fulfillment per unit
• Etsy: 6.5% transaction + $0.20 listing
• eBay: 12–15% final value fee
• Shopify: 0% platform fee + 2.9% + $0.30 payment processing
• Stripe / PayPal: typically 2.9% + $0.30

Calculators by platform

• Shopify Pricing Calculator — Shopify Payments fees pre-loaded
• Amazon FBA Pricing Calculator — referral and fulfillment fees pre-loaded
• Etsy Pricing Calculator — transaction, listing and payment fees pre-loaded
• eBay Pricing Calculator — final value fee pre-loaded

Frequently asked questions

What is this calculator for?

This calculator helps you determine the right price for your product by working backwards from your revenue goals. Instead of guessing at pricing, you input your desired monthly revenue, expected sales volume, and costs—then the calculator tells you exactly what to charge.

How do I use the basic calculator?

Start with three simple inputs: your monthly revenue goal (how much profit you want to make), expected monthly sales (how many units you think you'll sell), and cost per unit (what it costs you to make or buy each product). The calculator instantly shows you the price you need to charge.

What are the advanced options for?

Advanced options let you account for real-world costs like platform fees (Shopify, Amazon, Etsy charges), payment processing fees (Stripe, PayPal), shipping costs, monthly overhead (rent, software), marketing costs, and even churn or refund rates. These make your pricing calculation much more accurate.

What platform fees should I use?

Common platform fees: Amazon FBA (15% + $3-5 fulfillment), Etsy (6.5% + $0.20), eBay (12-15%), Shopify (0% platform, but 2.9% + $0.30 payment processing). Add payment processing separately if needed (Stripe/PayPal are typically 2.9% + $0.30).

How does the break-even calculation work?

Break-even shows how many units you need to sell to reach your revenue goal. If the number seems too high, you can either increase your price, reduce costs, or adjust your revenue expectations. It's a reality check on whether your goals are achievable.

Can I share my calculation with others?

Yes! Use the 'Copy to Clipboard' button to copy your results and share them with partners, advisors, or save them for later reference.

How much profit margin should I aim for?

For most e-commerce businesses, aim for at least 30–50% gross margin after product costs. If you plan to run paid ads on Facebook, Google, or TikTok, 30% is the practical floor — ad costs typically consume 15–25% of revenue, leaving little profit below that threshold. Businesses selling on Amazon FBA often need 40%+ to absorb platform and fulfillment fees.

How do I price a product for Amazon FBA?

Add Amazon's referral fee (typically 15% of the sale price) and FBA fulfillment fees ($3–5 per unit for standard-size items) to your unit cost. In the calculator's advanced options, enter 15% as the platform fee and your fulfillment cost as a flat shipping amount. As a rule of thumb, Amazon sellers target at least $10 net profit per unit after all fees.

What's the difference between markup and margin?

Markup is added on top of cost; margin is profit as a percentage of the selling price. Example: a product costing $40 with a 50% markup sells for $60, but the gross margin is only 33.3% ($20 profit ÷ $60 price). Always confirm which metric you're using — many sellers accidentally under-price by confusing the two.