Ecommerce Product Pricing Calculator
Calculate the selling price you need to cover product costs, fulfillment, selling fees, and your target gross margin.
Cost breakdown
Pricing detail
Price a product from the costs that actually sit behind each order
Use this calculator when you know what a product costs you and want to find a selling price that protects a chosen gross margin.
The calculation starts with your landed product cost, then adds optional per-order costs such as fulfillment, packaging, shipping you absorb, fixed transaction fees, and other variable costs.
Percentage-based selling fees are handled separately because they change with the selling price. The calculator solves for a price that covers those costs while leaving your selected share of revenue as gross profit.
This is a unit-economics pricing tool. It does not tell you what customers are willing to pay or whether the resulting price is competitive in your market.
How the product price is calculated
The calculator works backward from your costs and target margin instead of simply adding a percentage markup to cost.
Add the fixed per-order costs
Product cost, fulfillment, packaging, absorbed shipping, other variable costs, and fixed selling fees are added together.
Account for percentage selling fees
Payment processor, marketplace, or platform fees that are charged as a percentage of revenue are calculated from the final selling price.
Protect the target gross margin
The calculator finds the selling price where the remaining gross profit equals the percentage of revenue you selected as your target margin.
Check the break-even point
The break-even selling price shows the minimum price that covers the included costs and fees before any gross profit remains.
Example product pricing calculation
Suppose an ecommerce product has the following order economics:
The recommended selling price is about $49.12. At that price, the percentage selling fee is about $1.47, total included cost is about $29.47, and gross profit is about $19.65, which is 40% of the selling price. The break-even selling price is about $28.87.
What each result means
The headline price is only one part of the answer. The supporting metrics show why that price is sustainable.
Recommended selling price
The calculated selling price needed to cover the costs you entered and still achieve the selected target gross margin.
Estimated cost per order
The product and per-order costs plus the selling fees generated by the recommended price.
Gross profit per order
The amount left from the recommended selling price after subtracting the included costs and selling fees.
Gross margin
Gross profit divided by selling price. This is different from markup, which compares profit with cost.
Break-even selling price
The minimum selling price that covers the included costs and fees but leaves no gross profit.
Markup on total cost
Gross profit expressed as a percentage of total included cost. It is useful for comparison, but it is not the same metric as gross margin.
Product pricing questions
A few common questions that come up when using cost-based ecommerce pricing.
Is gross margin the same as markup?
No. Gross margin is profit divided by selling price, while markup is profit divided by cost. For example, a $50 cost sold for $100 has a 50% gross margin but a 100% markup.
Should I include advertising cost in the product price?
If acquisition cost is predictable and you want every order to carry that cost, you can include it under other variable costs. For deeper advertising analysis, use the Profit Per Order and Break-even ROAS calculators.
What should I include in percentage selling fees?
Use this field for costs charged as a percentage of the selling price, such as payment processing, marketplace commissions, or platform transaction fees. Fixed transaction fees belong in the separate fixed-fee field.
Why can the recommended price be much higher than my product cost?
Because the calculator is protecting a margin on the selling price, not simply adding a markup to cost. Fulfillment, shipping, selling fees, and other variable costs can also raise the sustainable price.
Does this calculator include taxes or VAT?
No. The calculator models the order costs and selling fees you enter. Tax-inclusive pricing and tax obligations depend on how and where you sell, so those should be handled separately.