Pricing calculator
Work out the selling price that covers your costs and fees and gives the profit margin or markup you want.
Free to use, no account needed. What you type stays in your browser.
Selling price
$67.62
Profit per unit
$20.29
Fees per sale
$2.33
Profit margin
30.01%
Markup on cost
45.09%
- Selling price$67.62
- Costs per unit$45.00
- Fees per sale$2.33
- Profit per unit$20.29
How this is calculated
The price is worked out from your costs, the fees taken from each sale and the profit you want. These are the formulas used:
- Price from a target margin
- (C + F) ÷ (1 − m ÷ 100 − f ÷ 100)
- Price from a target markup
- (C + F + C × k ÷ 100) ÷ (1 − f ÷ 100)
- Fees per sale
- P × f ÷ 100 + F
- Profit per unit
- P − C − fees
P is the selling price, C is the total cost per unit, F is the fixed fee per sale, f is the fee in percent, m is the target margin in percent and k is the target markup in percent.
Margin is profit as a share of the price, and markup is profit as a share of the cost. With no fees, a 30% margin is a 42.86% markup, so the two are not interchangeable. Markup here is on your total cost per unit, without the fees.
The price is rounded up to the next cent so the target is reached. Fees and profit are then worked out from that price, in whole cents, so price = costs + fees + profit exactly. The price is before any sales tax or VAT.
Worked example
A product that costs $40.00 plus $5.00 for shipping and packaging, sold on a platform that takes 3% plus $0.30 per sale, needs a price of $67.62 to keep a margin of 30%. The fees come to $2.33, which leaves a profit of $20.29 per unit.
Pricing questions
How do I price a product?
Add up everything you pay for one unit, add the fees taken from each sale, then choose the profit you want. The price must cover all three. This calculator does that in one step.
What is the difference between margin and markup?
Margin is profit divided by the selling price. Markup is profit divided by the cost. A product bought for 50 and sold for 75 has a 33.33% margin and a 50% markup.
Why should fees be included in the price?
Platform and card fees are taken from the selling price, so a price that ignores them leaves less profit than you planned. The higher the fee, the higher the price must be.
Does the price include tax?
No. The price is before VAT, GST or sales tax. Use the VAT / GST calculator to add tax to the price.
Is my information stored or sent anywhere?
No. The calculation runs in your browser. The numbers you enter are not sent to us or saved.
Related calculators
- Profit margin calculatorEnter your revenue and costs to see gross profit, gross margin, markup and net margin.
- Break-even calculatorFind how many units you must sell to cover your costs. Add a target profit to see how many you need to earn it.
- VAT / GST calculatorAdd VAT or GST to a price, or take it out of a price that already includes tax. Enter your own rate.
Results are estimates for planning. They are not financial, tax or religious advice.