Product pricing calculator
Work back from your costs to the price that keeps the margin you want, after shipping, payment fees and your share of fixed costs.
Example numbers. Replace them with yours.
- Price to charge
- USD 44.34
- Price including tax
- USD 44.34
- Fixed cost per unit
- USD 6.67
- Fees per unit
- USD 1.59
- Profit per unit
- USD 11.08
What it calculates
Most pricing mistakes come from adding a margin to product cost only. Payment fees are charged on the selling price, so they grow with the price you set. This calculator solves for the price that covers product cost, shipping, a share of fixed costs and percentage fees, and still leaves your target margin.
How to read the result
If the price comes out as —, your fee percentage plus target margin is 100% or more. Lower the target margin. Compare the result with what competitors charge. If it is much higher, the cost side needs work before the price does. This price does not include ad cost. Use the max cost per order calculator to see how much ad cost it can carry.
Learn the metric:Gross marginCOGS
The formula
Fixed per unit = Fixed costs ÷ units per month
Price = (COGS + shipping + fixed per unit + fixed fee)
÷ (1 − fee % − target margin)
Price with tax = Price × (1 + tax rate)Worked example
Example inputs
- Product cost per unit
- USD 18
- Shipping per unit
- USD 7
- Fixed costs per month
- USD 4,000
- Units sold per month
- 600
- Payment fee
- 2.9%
- Fixed fee per order
- USD 0.30
- Target margin
- 25%
- Sales tax / VAT
- 0%
Results
- Price to charge
- USD 44.34
- Price including tax
- USD 44.34
- Fixed cost per unit
- USD 6.67
- Fees per unit
- USD 1.59
- Profit per unit
- USD 11.08
What changes the result
Target margin at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Target margin | Price to charge | Profit per unit |
|---|---|---|
| 12.5% | USD 37.79 | USD 4.72 |
| 18.8% | USD 40.83 | USD 7.68 |
| 25% | USD 44.34 | USD 11.08 |
| 31.3% | USD 48.58 | USD 15.21 |
| 37.5% | USD 53.64 | USD 20.11 |
Use your real numbers
Analify reads product costs and order volume from Shopify, shipping from connected couriers and fixed costs from Finance, and shows margin per product after those costs.
Analify already reads 4 of these 8 inputs live, from Shopify · Courier · Finance
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Questions
How do I price a product for profit?
Add up every cost per unit, including a share of fixed costs, then divide by (1 − fee % − target margin). Dividing, not adding, makes sure the margin holds after percentage fees.
Should fixed costs be in my product price?
Yes, if you want the price to cover the business and not only the product. Spread fixed costs over the units you expect to sell in the same month.
Why is the price higher than cost plus my margin?
Because payment fees and the margin are both a percentage of the final price. Each one raises the price, which raises the other.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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