Pricing

Product pricing calculator

Work backward from your target net margin to the exact price to charge, after platform fees and ad spend.

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What this calculator does

Most sellers price a product by adding a rough markup to cost and hoping the margin works out. This calculator does the reverse and the more reliable thing: you tell it the margin you want to keep, and it tells you the price to charge.

It accounts for your costs, your platform's percentage fee, and your ad spend, then solves for the selling price that leaves your target margin intact. It also shows your break-even price, the point below which you lose money on every sale. That turns pricing from guesswork into a decision you can defend.

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What this calculator does

Most sellers price by guessing or copying competitors — this calculator works backwards from your target profit margin to tell you exactly what price you need to charge. It factors in every cost (COGS, shipping, packaging, platform fees, and ad spend) so you never accidentally underprice.

How to fill it in

  • COGS — your cost to make or buy one unit
  • Shipping — your outbound shipping cost per order
  • Packaging — box, inserts, tape, labels per unit
  • Platform fee % — TikTok Shop is ~6%, Amazon referral is ~15%, Shopify is ~2.6–2.9%
  • Ad spend — your average paid marketing cost per order
  • Target margin — drag to your goal. Most healthy ecom products aim for 20–40%.

Worked example — candle brand on TikTok Shop

Inputs:

COGS (wax, wick, jar, fragrance)$8.00
Shipping$5.50
Packaging (box + insert)$1.25
TikTok platform fee (6%)varies
Ad spend per order$4.00
Target net margin30%

Result:

Recommended price$28.47
Break-even price$19.93

At $28.47 this brand nets $8.54 per order (30% margin). If they price at $24.99 because "it looks better," they're only making 16% — undercutting their own profit target by nearly half. The scenario table shows them exactly what each price point means in real dollars.

Using the scenario table

The table shows 5 price points around your recommended price. The highlighted row (★) is your target. Use the rows above and below to understand the tradeoff between a lower price (more sales, less profit per unit) and a higher price (fewer sales, more profit per unit). Neither is automatically better — it depends on your volume and conversion rate.

Your costs
Product / COGS
$
Shipping & fulfillment
$
Packaging
$
Platform & processing fee %
Combined % taken from selling price
%
Ad spend per order
$
Your target
Target net margin 30%
Recommended selling price
—
—
Total fixed cost
—
before platform fee
Break-even price
—
zero profit
3× COGS markup
—
common retail rule
5× COGS markup
—
high-margin target
Price point analysis
Selling price Net profit Net margin
Estimates only. Not financial, tax, or legal advice. Recommended prices are mathematical outputs based on your inputs. Actual market pricing depends on competition, perceived value, and consumer demand. Full legal disclaimer

How to use the calculator

Enter your product cost, shipping, and packaging, then your platform fee percentage and your ad spend per order. Set the target net margin you want to keep with the slider. The tool returns the recommended price, your break-even price, and common markup reference points. Nothing you type is saved.

A worked example you can follow

Here is the default scenario: a product costing $12, with $5 shipping, $1 packaging, an 8% platform fee, $5 of ad spend per order, and a 30% target net margin.

Worked example · 30% target margin

From target margin to price

Fixed costs (cost + shipping + packaging + ads)$23.00
Platform fee8%
Target net margin30%
Recommended price$37.10

Charging about $37.10 leaves a 30% net margin after the fee and ad spend. Your break-even price is about $25.00, so anything below that loses money on every sale. Notice the price is not simply cost plus 30%, because the fee and margin both apply to the final price.

Margin vs. markup, the difference that changes the price

This is the concept the calculator is built around, and it is the one that costs sellers the most when they get it wrong. Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. They describe the same profit from different angles, so they are never the same number. A 30% margin is not a 30% markup, and pricing with the wrong one quietly erodes your profit on every unit.

The math the calculator runs makes this precise. To hit a target margin, the price is your fixed costs divided by one minus your margin and your fee percentage combined. That is why raising your target margin from 30% to 40% does not simply add 10% to the price: the denominator shrinks, and the price rises faster than the margin does. Understanding that relationship is what lets you price deliberately instead of by feel.

Using this to make better decisions

Set your target margin first, then let the tool find the price, rather than the other way around. If the recommended price is higher than the market will bear, that is useful information early: you may need to lower costs, reduce fees, or accept a smaller margin before launch. This is general educational guidance, not financial advice.

Glossary of terms

New to selling online? Every term this calculator uses is defined below in plain language, with a quick example where it helps. No prior experience assumed.

Selling price
The amount you charge the customer for one unit, which this calculator solves for.
Net margin
Profit as a percentage of the selling price. It is the target you set, and the tool finds the price that delivers it.Example: keeping $11 on a $37 sale is roughly a 30% net margin.
Markup
Profit as a percentage of your cost, not your price. Markup is always a larger percentage than margin for the same sale.Example: a $10 cost sold at $20 is a 100% markup but only a 50% margin.
Break-even price
The lowest price at which you neither make nor lose money. Below it, every sale is a loss.
Fixed costs
The per-order costs that do not change with price: product, shipping, packaging, and ad spend.
Platform fee
The percentage a marketplace keeps from each sale, applied to the final price.
Keystone pricing
A traditional retail rule of doubling the cost (a 2x markup, a 50% margin). A useful reference point, not a rule.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. They are never equal, and using markup when you meant margin leaves you with a thinner profit than you planned.

Why is the price not just cost plus my target margin?

Because both the margin and the platform fee are percentages of the final price, not the cost. The calculator solves for the price where everything balances, which is always higher than a naive cost-plus figure.

Does the calculator store the numbers I enter?

No. Everything is calculated locally in your browser and nothing is collected or transmitted.

Is this financial advice?

No. The results are estimates for your own planning, not financial or accounting advice.

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