E-commerce Price Calculator
Work backwards from the margin you need: costs and payment fees in, the minimum price you should charge out — plus a profit check at your current price.
Result
Price = (product + shipping + other) ÷ (1 − fee% − margin%). Raise price, not margin, when the denominator goes small.
Margin vs markup — don't mix them
Margin is profit ÷ price; markup is profit ÷ cost. A "50% markup" on a $10 product prices it at $15 — but that's only a 33.3% margin. If your ad costs assume 60% margin, using markup silently breaks the plan.
Formulas used
- Recommended price = total unit costs ÷ (1 − payment fee % − target margin %)
- Margin at current price = (price − costs − fee) ÷ price
- Markup = (recommended price − costs) ÷ costs
FAQ
Why is the formula a division, not a multiplication?
Because margin is defined on the final price. Costs ÷ (1 − fee% − margin%) allocates fee and margin as shares of price. Multiplying cost by (1 + margin) computes markup instead — a different, usually lower, target.
Should ad cost be part of the target margin?
For first-sale profitability, yes — many brands price for 70% gross margin so 15–25 points of it can go to ads and overhead. Repeat-driven brands can price thinner and let LTV carry the CAC.
What about psychological pricing?
The charm price row shows the price rounded down to x.99-style endings. Verify it still clears your margin floor after rounding.
Gear your product photos need
Photo light box
Even, shadow-free lighting for listing photos.
See prices on Amazon →Phone tripod
Steady shots and short product video without a rig.
See prices on Amazon →Seamless backdrop
Clean backgrounds so the product is the only subject.
See prices on Amazon →Shipping box variety pack
Assorted corrugated sizes so one SKU never forces three.
See prices on Amazon →As an Amazon Associate we earn from qualifying purchases through these links. The price you pay is the same either way.