E-commerce Product Pricing Calculator
Calculate the optimal retail selling price for your e-commerce products based on manufacturing COGS, shipping, ad spend, merchant fees, and target profit margin.
Direct Unit Costs
Fee Deductions & Target Profit
0% for Shopify, ~15% Amazon
Optimal Product Pricing Formula
Suggested Price = (COGS + Packaging + Shipping + Ad CAC + Fixed Fee) / (1 - Target Margin % - Marketplace % - Processing %)- Direct Fixed Costs: Unit manufacturing, packaging supplies, merchant shipping, ad spend per order, and flat gateway fees.
- Variable Percentage Deductions: Target net profit margin, marketplace referral percentage, and credit card processing rate.
- Markup vs Margin: Markup calculates profit relative to cost, while margin calculates profit relative to the final retail price.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Formula mathematically guarantees target net margin when cost assumptions are met.
- Payment processing rate assumes standard domestic card rates (2.9% + $0.30).
Frequently Asked Questions
Why should I price products based on margin rather than markup?
Margin reflects the actual percentage of revenue you keep as cash in the bank after all expenses. Pricing by markup often underestimates payment fees, ad costs, and marketplace commissions.
What happens if the suggested price is higher than competitor prices?
You must either lower variable costs (e.g. negotiate supplier COGS or optimize shipping packaging), increase perceived brand value, or accept a lower target profit margin.
Related Cost Calculators
Product Selling Price Calculator
Calculate selling prices by applying either a target gross margin percentage or markup on cost, with optional sales tax calculations.
E-commerce Profit Margin Calculator
Calculate both gross margin and net margin for your online retail products by factoring COGS, shipping, marketplace fees, and advertising.
E-commerce Markup Calculator
Calculate dollar markup, markup multipliers, and resulting profit margins from product cost, and benchmark against competitor pricing.