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Selling Price Calculator

October 2026 14 min read

Calculate the optimal selling price from cost, margin target, fees, shipping and ad spend. Free, instant, no sign-up — for retail, wholesale and services.

Price it right — keep every dollar of margin

Enter cost + fees once. Get a fee-proof selling price, per-unit profit, break-even floor, and monthly forecast for any business type.

Retail · Wholesale · ServicesMargin + markup modesBreak-even floor
Typical Amazon referral fee (many categories)
15%
Source: Amazon Seller Central fee schedule
eBay final-value fee (most categories)
13.25%
Source: eBay seller fees
Etsy transaction + payment fee stack
6.5% + 3%
Source: Etsy seller fees
Standard Stripe / PayPal online rate
2.9% + $0.30
Source: Stripe & PayPal pricing

Interactive Calculator

Enter your numbers — every result below updates instantly. Free forever, no sign-up.

Pricing inputs

Product cost — landed COGS per unit ($)
Desired net profit margin (%)

Net = after ALL fees. 30–40% is healthy for most products.

Marketplace fee (%)
Payment fee (%)

Presets: Amazon 15% · eBay 13.25% · Etsy 6.5% · Direct 0% — Stripe 2.9% · PayPal 2.99%

Shipping / unit ($)
Marketing / unit ($)
Monthly fixed costs ($)
Expected units / month

Pricing results

Costs before fees (cost + ship + ads)$29.00
Combined fee rate17.9%
Suggested selling price$68.88
Platform fee (15%)−$10.33
Payment fee (2.9%)−$2.00
Profit per unit$27.55
Achieved net margin40.0% (target met ✓)
Markup equivalent244.4%
Break-even floor$33.00/unit
Pricing headroom (price − floor)$35.88
Monthly revenue (500 units)$34441.81
Monthly net profit$11776.72
Pricing note: list at $68.88 to hold your 40% net margin — keeping $27.55/unit after all fees. Never discount below your $33.00 floor.

Visual Price & Profit Breakdown

See exactly where every dollar of your selling price goes — costs, fees, and the profit you keep.

  • Product cost$20.00 (29.0%)
  • Shipping$5.00 (7.3%)
  • Marketing$4.00 (5.8%)
  • Platform fee (15%)$10.33 (15.0%)
  • Payment fee (2.9%)$2.00 (2.9%)
  • Your profit$27.55 (40.0%)

Bars are proportional to the $68.88 suggested price — watch the green profit slice grow as you raise margin or cut costs.

Key Takeaways

The 30-second version — the exact answers Google loves to feature.

  • 1Selling Price = (Cost + Shipping + Marketing) / (1 - Net Margin - Fee Rate). A $20 cost at 40% margin prices at $33.33 before fees.
  • 2Margin is profit / PRICE; markup is profit / COST. A 50% markup equals only a 33.3% margin — never confuse them.
  • 3Healthy net margin is 30-40% for most products; under 20% is fragile once fees, shipping and returns hit.
  • 4Never list below your break-even floor: (Monthly Fixed Costs / Units) + Variable Cost per Unit.
  • 5Use Starter (cost-plus) to test, Growth (value + competitor) to scale, Scale (dynamic + bundles) for brands.

Business Statistics That Shape Smart Pricing

Benchmarks from widely-cited industry research. Use them to sanity-check your margins, fees, and conversion assumptions.

Typical Amazon referral fee (many categories)
15%
Source: Amazon Seller Central fee schedule
eBay final-value fee (most categories)
13.25%
Source: eBay seller fees
Etsy transaction + payment fee stack
6.5% + 3%
Source: Etsy seller fees
Standard Stripe / PayPal online rate
2.9% + $0.30
Source: Stripe & PayPal pricing
Average cart abandonment — price + shipping shock is a top cause
68%
Source: Baymard Institute
Healthy net margin target for most products
30-40%
Source: Industry benchmarks

Pricing Plans Compared: Which Strategy Fits Your Business?

Three proven pricing plans for this calculator's niche. Match the plan to your stage, then plug its margin target into the calculator above.

Starter Plan — Cost-Plus

Best for: new businesses & testing new products

  • Price rule: Price = (COGS + shipping + ads) / (1 - margin - fee rate)
  • Margin target: 25-35% net margin
  • Fees: One channel (e.g. direct + Stripe only)
Most popular

Growth Plan — Value + Competitor

Best for: scaling businesses on 2-3 channels

  • Price rule: Cost-plus floor, then adjust ±10% to perceived value & top-5 competitor prices
  • Margin target: 35-50% net margin
  • Fees: Marketplace + payment + ad TACOS included

Scale Plan — Dynamic & Portfolio

Best for: brands, bundles & high volume

  • Price rule: Dynamic rules + bundle/mix pricing with returns reserve built in
  • Margin target: 50%+ blended margin with LTV cushion
  • Fees: Landed cost + storage + returns + VAT/sales-tax handling

Industry Benchmarks: Typical Margins & Markups

Compare your numbers against common verticals before you lock a price. Your required markup must cover overhead plus target profit.

IndustryTypical net marginTypical markupNotes
Grocery retail13-23%15-30%High turnover, thin margin; profit comes from volume.
Clothing retail33-50%50-100%Keystone (2x cost) is the traditional anchor.
Restaurants (food)38-44%60-80%Food cost targeted at 25-35% of menu price.
Electronics23-33%30-50%Competitive; attach warranties and bundles for margin.
Furniture50-75%100-300%Low turnover needs high markup to cover floor space.
Professional services50-67%100-200%Markup covers non-billable time and overhead.
SaaS / software44-60%80-150%Near-zero marginal cost after build; price on value.
Manufacturing23-38%30-60%Custom work prices higher than mass production.

Formulas & How to Use This Calculator

Core fee-proof price formula

Suggested Price = (Product Cost + Shipping + Marketing per unit) / (1 - Desired Net Margin - Platform Fee Rate - Payment Fee Rate) Example: ($20 + $5 + $4) / (1 - 0.40 - 0.15 - 0.029) = $29 / 0.421 = $68.88

Margin vs markup conversion

Margin = (Price - Cost) / Price (share of PRICE that is profit) Markup = (Price - Cost) / Cost (share of COST added on) Markup% = Margin% / (1 - Margin%) x 100 -> 40% margin = 66.67% markup Margin% = Markup% / (1 + Markup%) x 100 -> 50% markup = 33.3% margin

Break-even floor formula

Break-Even Price = (Monthly Fixed Costs / Expected Units) + Variable Cost per Unit Example: ($2,000 / 500) + $20 + $5 + $4 = $4 + $29 = $33.00/unit. Never price below this.

How to use — step by step

  1. Enter your landed product cost (COGS): what one unit really costs you delivered — item + inbound freight + packaging.
  2. Set your desired NET margin (after all fees, not gross). 30-40% is a healthy starting target for most products.
  3. Enter your channel fee rates: Amazon ~15%, eBay ~13.25%, Etsy 6.5%, direct/Shopify 0% + payment rate (Stripe 2.9%, PayPal 2.99%).
  4. Add per-unit shipping and marketing (ad spend / units). This is where most sellers underprice — be honest here.
  5. Add monthly fixed costs (rent, tools, subscriptions) and expected units to get your break-even floor and monthly forecast.
  6. Read the suggested price, check the visual breakdown bars, then compare the three pricing plans and adjust for competitors.

Worked Examples

Real numbers, fully worked — copy the pattern for your own products and services.

Example 1 — Direct/Shopify product

Inputs

Cost $20, margin 40%, platform 0%, payment 2.9%, shipping $5, marketing $4, fixed $2,000, 500 units

Math

Price = ($20+$5+$4) / (1 - 0.40 - 0 - 0.029) = $29 / 0.571 = $50.79 Profit/unit = $50.79 - $20 - $1.47 - $5 - $4 = $20.32 -> 40.0% margin Break-even = $2,000/500 + $29 = $33.00

Result

$50.79 price · $20.32 profit/unit · 40% margin · $8,160 monthly net profit

Example 2 — Same product on Amazon

Inputs

Cost $20, margin 40%, platform 15%, payment 2.9%, shipping $5, marketing $4, fixed $2,000, 500 units

Math

Price = $29 / (1 - 0.40 - 0.15 - 0.029) = $29 / 0.421 = $68.88 Platform fee ~ $10.33, payment ~ $2.00 Profit/unit = $68.88 - $20 - $10.33 - $2.00 - $5 - $4 = $27.55 -> 40.0%

Result

$68.88 Amazon price · $27.55 profit/unit · $18.09 above the direct price (fee gap)

Example 3 — Wholesale quote check

Inputs

Retail target $50.79, wholesale at 50% of retail = $25.40, landed cost $14

Math

Wholesale margin = ($25.40 - $14) / $25.40 = 44.9% Markup = ($25.40 - $14) / $14 = 81.4% Floor check: $25.40 vs $33.00 direct break-even -> wholesale needs 800+ units or lower cost

Result

Wholesale works only with volume: 800 units drops fixed share to $2.50, floor to $31.50 — still tight, renegotiate cost

Example 4 — Discount safety check

Inputs

Normal price $68.88, planned 20% sale, break-even $33.00

Math

Sale price = $68.88 x 0.80 = $55.10 Sale profit = $55.10 - $20 - $8.27 (15%) - $1.60 - $5 - $4 = $16.23 -> 29.5% margin, still above $33 floor

Result

20% off is safe here — but a 50% off sale ($34.44) would nearly hit break-even

Advanced Education: Master This Topic

Beyond the basics — the concepts professionals use to price for profit across channels, seasons, and competitors. Each section below targets a real long-tail search.

Cost-plus vs value-based vs competitor-based pricing

Cost-plus (cost + target margin) guarantees you never lose money and is the right starting point — it is exactly what the calculator above does. Value-based pricing then asks what the outcome is worth to the buyer: a $12 serum that visibly works can hold a $39 price even when cost-plus says $24. Competitor-based pricing anchors you to the market: map the 5 closest listings, and position deliberately — match for parity, +10-15% with a clear differentiator (bundle, warranty, faster shipping), or -10% only when you have a structural cost edge. Professionals use all three: cost-plus sets the floor, value sets the ceiling, competitors pick the point in between.

Margin, markup, and contribution margin — stop mixing them up

Margin is profit / PRICE; markup is profit / COST. A 50% markup is only a 33.3% margin — confusing them is the single most common reason sellers think they earn 50% while actually earning 33%. Contribution margin goes one step further: (Price - all variable costs) / Price. It tells you what each extra sale contributes toward fixed costs and profit. Track all three: use markup when talking to suppliers, margin when setting prices, and contribution margin when deciding whether more ad spend or a discount is affordable.

The fee stack: why one price never fits all channels

A $50 product keeps very different amounts per channel: direct with Stripe you keep ~$48.25 after 2.9% + $0.30; on Amazon at 15% referral you keep ~$42.50 before fulfillment and storage; on eBay at 13.25% you keep ~$43.38; on Etsy at 6.5% + 3% + $0.25 + $0.20 listing you keep ~$44.80. That 5-11% gap is why sellers need channel-specific prices (or one price set for the most expensive channel). Enter each channel separately in the calculator and compare — the fee gap is often larger than the entire ad budget.

Break-even first: the floor every discount must respect

Break-even price = (Monthly Fixed Costs / Expected Units) + Variable Cost per Unit. It is the lowest price that covers all costs at a given volume — any price below it loses money by definition. Compute it before any promotion: list price for a max discount D must satisfy List >= Floor / (1 - D). Remember stacking: a 20% sale plus a 20% coupon is 36% off total (1 - 0.8 x 0.8), not 40%. Fund promotions from the marketing line in your price, exclude discounted SKUs from extra codes, and never let automation reprice below the floor.

Psychological pricing: charm, prestige, and anchor prices

Charm pricing ($29.99 vs $30) still lifts conversion 5-10% on commodity products because shoppers read left-to-right and anchor on the first digits. Prestige pricing does the opposite: round numbers ($50, $120) signal quality for premium, handmade, and luxury goods — decimals can cheapen them. Anchor pricing shows the crossed-out MSRP next to your price so the discount feels concrete; it only works when the anchor is believable. Rule of thumb: use .99 endings under $100 on marketplaces, round numbers for premium direct brands, and always A/B test — the calculator gives you the math-safe price, psychology picks the final digits.

Price elasticity: how to test prices without guessing

Elasticity = % change in quantity / % change in price. Elastic products (commodities, many substitutes) lose volume fast when price rises; inelastic ones (unique, urgent, luxury) hold volume. Measure it in 5% steps over 2+ weeks with at least 200 orders per variant, and judge PROFIT per visitor — not conversion alone, because a higher price with slightly lower conversion often wins. Seasonal peaks, fee changes, and competitor stock-outs are the highest-ROI moments to move price up. Never test below your break-even floor.

Services and wholesale: the same math, different cost base

For services, replace product cost with fully-loaded hourly cost (wages + benefits + tools + overhead) divided by billable utilization (typically 50-70%). A $50/hour loaded cost at 60% utilization needs a $125-150 billed rate for a 50%+ margin. For wholesale, retail partners expect ~50% of MSRP (keystone in reverse): a $50 retail item wholesales near $25, so landed cost must sit under ~$12-15 to keep margin on both sides. Set MAP (minimum advertised price) to protect retail partners, and never let wholesale leak below your own direct floor — the break-even output is your absolute wholesale minimum.

Industry Playbooks

Cost structures differ by vertical — here is how to adapt one base price per business type without losing margin.

Retail (store & online)

Use keystone (2x cost) as a sanity check, then model real fees: card processing ~2.9%, returns reserve 5-15% in apparel, and shrinkage 1-2%. Charm-price under $100 (.99 endings), round-number premium lines. Re-check rent and labor share quarterly — they move the break-even floor more than COGS does.

Wholesale / Distribution

You sell margin to someone else: quote at 40-50% of MSRP and keep 20-30% net after freight and terms (2/10 net 30 costs ~2%). Tiered volume pricing (5% at 100 units, 10% at 500) protects margin while rewarding scale. Always confirm the retailer can still hit THEIR 50% margin at your wholesale price.

Services / Freelancers

Cost = loaded hourly rate / utilization. At $60/hour loaded cost and 60% utilization, the floor is $100/hour before profit — a 40% margin needs ~$167/hour billed. Productize with fixed packages (anchor + good/better/best tiers) instead of open hourly billing; it lifts realized price 15-30% for identical work.

Manufacturing / DTC brands

Price from LANDED cost (factory + freight + duties + warehousing), not factory price — the gap is routinely 15-30%. Amortize tooling and setup over expected run size (setup / units belongs in unit cost). DTC margin headroom funds ads and bundles that wholesale competitors cannot match; keep MAP to defend retail partners.

Glossary: Key Terms Explained

COGS (Cost of Goods Sold)
Direct cost of one unit: item cost + inbound freight + packaging. The starting input of every price calculation.
Landed cost
COGS plus all costs to get the unit ready to sell: freight, duties, customs, warehousing inbound. Use landed cost — not factory price — in the calculator.
Gross margin
(Revenue - COGS) / Revenue. Product-level profitability before operating expenses.
Net margin
Profit after ALL costs (fees, shipping, ads, fixed costs) / revenue. The margin target this calculator optimizes for.
Markup
(Price - Cost) / Cost. Percentage added to cost. 50% markup = 33.3% margin — not the same thing.
Keystone pricing
Doubling cost (100% markup = 50% margin). A traditional retail shortcut; fine as a starting point, rarely optimal online.
Break-even price
The lowest price that covers all costs at a given volume. Any price below it loses money by definition.
TACOS
Total Advertising Cost of Sale: ad spend / total revenue. The right way to put ads into per-unit pricing.
MAP (Minimum Advertised Price)
The lowest price a brand allows resellers to advertise. Violating it risks losing the supplier.
Contribution margin
(Price - all variable costs) / Price. What each extra sale contributes toward fixed costs and profit.

Common Mistakes & Pro Tips

Mistakes that kill margin

  • Pricing from factory cost instead of landed cost — freight, duties, and packaging silently eat 10-30%.
  • Confusing markup with margin: a "50% markup" feels like 50% profit but is only 33.3% margin.
  • Forgetting payment fees ($0.30 fixed part hurts most on cheap items) and returns reserve (5-15% in apparel).
  • Copying the cheapest competitor without their cost structure — you match their price but not their profit.
  • Running stacked discounts (sale + coupon + free shipping) that push the final price below break-even.
  • Setting one price for all channels — marketplace and wholesale fee gaps differ by 5-50% on the same item.

Pro tips to grow profit

  • Add a 3-5% "friction reserve" to every price for returns, refunds, and fee increases — profitable sellers do this by default.
  • Charm-price marketplace listings (.99) but round-number premium direct products ($48, $120) — match psychology to the channel.
  • Raise any free-shipping threshold to ~115% of average order value: baskets grow faster than the absorbed shipping cost.
  • Re-check fees quarterly — marketplaces and card processors change fee tables yearly, often in Q1.
  • Bundle slow movers with heroes at a 10-15% bundle discount: blended margin rises while inventory clears.
  • A/B test in 5% steps, not 20% jumps — price elasticity is measured in small moves over 2+ weeks.

Who Should Use This Calculator?

  • ▸ New founders validating whether a product idea can hold 30-40% margin before ordering inventory
  • ▸ Retailers setting shelf prices with card fees, shrinkage, and staff cost inside the margin
  • ▸ Wholesalers splitting MAP retail prices from wholesale sheets with consistent margins
  • ▸ Amazon sellers adding referral, fulfillment, storage, and PPC TACOS into one fee-proof price
  • ▸ Shopify/direct stores setting prices with headroom for ads, email discounts, and free-shipping thresholds
  • ▸ Etsy makers covering listing renewals, transaction + offsite-ads fees without underpricing handmade work
  • ▸ Service firms converting loaded hourly cost and utilization into fixed package prices
  • ▸ Agencies and VAs producing client pricing sheets with copy-ready breakdowns and sources

Related Business Calculators

Keep optimizing — every tool below links directly into this workflow.

Frequently Asked Questions (28)

Long-tail answers: each question targets a real Google search about selling price calculator — click to expand.

How do I calculate the selling price of a product from cost and margin?
Use Selling Price = Cost / (1 - Desired Margin). For a $20 cost and 40% margin: $20 / (1 - 0.40) = $33.33. When marketplace and payment fees apply, use the full fee-proof formula: Price = (Cost + Shipping + Marketing) / (1 - Margin - Platform Rate - Payment Rate). The calculator above does this automatically.
What is the selling price formula with profit margin?
The margin-based selling price formula is Price = Total Unit Cost / (1 - Margin). Total unit cost includes landed COGS plus per-unit shipping and marketing. Example: $29 all-in cost at 40% margin gives $29 / 0.60 = $48.33. For fee channels, subtract fee rates from the denominator too: / (1 - Margin - FeeRate).
What is the difference between markup and margin in selling price calculation?
Markup = (Price - Cost) / Cost x 100 (based on COST). Margin = (Price - Cost) / Price x 100 (based on PRICE). A 50% markup equals only a 33.3% margin; a 100% markup (keystone) equals a 50% margin. Convert with: Markup% = Margin% / (1 - Margin%) x 100. Mixing them up is the most common pricing error in business.
What is the difference between selling price and cost price?
Cost price is what you pay to acquire or produce the product (landed COGS: materials, labor, freight, packaging). Selling price is what you charge the customer. The gap is gross profit, but selling price must also absorb platform fees, payment processing, shipping, marketing, returns, overhead, and your net margin target — which is why cost-plus-margin math beats gut feel.
How do I determine the right selling price for my product?
Start with landed cost, add per-unit shipping and marketing, pick a net margin target (30-40% is healthy), gross up for channel fees, then sanity-check against the 5 closest competitors and perceived value. Position deliberately: match for parity, +10-15% with a differentiator (bundle, warranty, speed), or -10% only with a structural cost edge.
What is cost-plus pricing and when should I use it?
Cost-plus = cost + fixed percentage to reach a target margin. Use it as your default floor for physical products, wholesale sheets, and catalogs over ~20 SKUs where simplicity matters. Its weakness: it ignores what buyers will pay — so pair it with a competitor check and value adjustments (the Growth plan) rather than using it blindly.
What is value-based pricing and how is it different from cost-plus?
Value-based pricing sets price from the outcome delivered, not the cost. A $12 serum that clears skin in 2 weeks can hold $39 if reviews prove it. Requirements: clear proof, strong reviews, differentiated branding. Test 10-15% above your cost-plus price with a small traffic split — if conversion holds, the premium is real margin.
What is keystone pricing and is doubling my cost enough?
Keystone = 2x cost (100% markup = 50% gross margin). It was built for traditional retail with low fees — online, after 15% marketplace + 3% payment + ads + shipping, keystone often leaves under 20% net. Treat 2x as a minimum sanity check, not a target: run your real fee stack in the calculator and you will usually need 2.5-4x landed cost.
How do I convert a desired margin into a markup percentage?
Markup% = Margin% / (1 - Margin%) x 100. Examples: 30% margin -> 42.9% markup; 40% margin -> 66.7% markup; 50% margin -> 100% markup. Multiply cost by (1 + markup) to get price: a $30 cost at 40% margin needs 66.67% markup -> $30 x 1.6667 = $50.00.
What is a good profit margin for a selling price?
Benchmarks: 30-40% net margin is healthy for most products; under 20% is fragile (one fee hike or return spike wipes it out); 50%+ is excellent and typical for handmade or strong brands. Commodity electronics often survive on 15-25% via volume; apparel and home goods target 40-60% gross. Never go below break-even + 10 points.
How do I calculate my break-even selling price?
Break-Even Price = (Monthly Fixed Costs / Expected Units) + Variable Cost per Unit. Example: $2,000 fixed / 500 units + $20 cost + $5 shipping + $4 marketing = $33.00. Price below $33 and every sale loses money; price above it and each sale contributes profit. The calculator shows your floor live.
How do I calculate the minimum selling price for a product?
Minimum Selling Price = Break-Even Price + Minimum Acceptable Profit per Unit. If break-even is $33 and you require at least $5/unit profit, the minimum list is $38 before discounts. For a planned max discount D, list higher: List = Minimum / (1 - D). A $38 minimum with 20% sales needs a $47.50 list price.
How should I price a product on Amazon with FBA fees?
Add three Amazon layers to your base price: the ~15% referral fee (varies by category), FBA fulfillment by size/weight tier, and monthly + long-term storage. Then add PPC TACOS (often 8-15%) into marketing per unit. A product priced at $51 direct typically needs $66-70 on Amazon for the same margin — enter 15% platform rate to see your exact number.
How do marketplace fees affect my selling price?
Marketplaces take a share of the PRICE, so you must gross up: Price = Costs / (1 - Margin - FeeRate). Amazon ~15%, eBay ~13.25%, Etsy 6.5% + 3% processing. A 15-point fee on a 40% margin target consumes over a quarter of the price equation — model each channel separately instead of using one blended price.
How do I include shipping costs in my selling price?
Two options: add average shipping to the price and advertise "free shipping" (converts better at the same total), or keep shipping separate with a free-shipping threshold ~15% above average order value. Either way, put the real per-unit shipping number in the calculator — "free shipping" is never free to you, it is a marketing cost inside the price.
How do I price products that I plan to discount or coupon?
Price UP so the discounted price still clears your floor: List Price = Floor Price / (1 - Max Discount). For a $33 floor and 20% sales, list at $41.25+. Remember stacking: 20% off + 20% coupon = 36% off total. Fund promos from the marketing line in your price and exclude discounted SKUs from extra codes.
What is the maximum discount I can offer without losing money?
Max Discount = 1 - (Break-Even Price / Current Price). A $68.88 price with a $33 floor supports up to 52% off before losses — but you should cap at margin policy instead: Max Promo Discount = 1 - ((Floor + Min Profit) / Price). With $5 minimum profit, cap at 1 - ($38/$68.88) = 44.8%.
Does $9.99 pricing still work (psychological / charm pricing)?
Yes for commodity and marketplace products — .99 endings lift conversion ~5-10% under $100 because shoppers anchor on left digits. For premium, handmade, or luxury goods, round numbers ($50, $120) signal quality and decimals can cheapen perception. Compute the math-safe price first, then round to the nearest charm or prestige ending above your floor.
How do I price a product bundle for maximum profit?
Bundle Price = (sum of individual floor prices) x (1 - bundle discount of 10-15%). Check blended margin: bundles usually RAISE total margin because they lift average order value and clear slow stock while the hero item carries the discount. Model each item in the calculator, sum the profits, and confirm the bundle beats selling the hero alone.
How should wholesale selling price differ from retail selling price?
Wholesale is typically 50% of MSRP (keystone in reverse): a $50 retail item wholesales at ~$25, so landed cost must sit under ~$12-15 to keep margin on both sides. Set MAP to protect retail partners, and never let wholesale leak below your own direct floor — the break-even output is your absolute wholesale minimum.
How do I calculate selling price for a service business?
Replace product cost with loaded hourly cost / utilization. Example: $60/hour loaded cost at 60% utilization means the floor is $100/hour; a 40% margin needs $100 / 0.60 = $166.67/hour billed. Package into fixed tiers (good/better/best) instead of open hourly billing — packaged services realize 15-30% higher prices for identical work.
How much should I reserve in my selling price for returns and refunds?
Reserve 3-5% for low-return categories, 8-15% for apparel and shoes, plus return-shipping cost where you cover it. Add it as extra marketing/fixed cost per unit in the calculator. If your return rate is 10% on a $50 item with $8 return shipping, that is ~$5.80 per sold unit that must live inside the price.
How do I price handmade products without underpricing?
Cost your TIME plus materials, then add listing, transaction, payment, and offsite-ads fees. Many makers forget renewals and ads and effectively earn below minimum wage. Target 45%+ margin in the calculator, charm-price the result ($29.99 instead of $30.77), and review quarterly as marketplaces adjust fees.
How often should I change my selling prices?
Review monthly, reprice quarterly, and automate only with a hard floor (break-even + minimum margin) so tools never sell at a loss. Change one variable at a time in 5% steps and wait 2+ weeks to read elasticity. Seasonal peaks (Q4), fee changes, and competitor stock-outs are the highest-ROI moments to move price up.
How do I A/B test selling prices without hurting my store?
Split traffic 50/50 between two prices 5-10% apart for at least 2 weeks or 200+ orders per variant, and measure PROFIT per visitor (not conversion alone) — a higher price with slightly lower conversion often wins. Keep the test invisible (same page, cookie-split) and never test below your break-even floor.
Should sales tax or VAT be included in my listed selling price?
In the US, list pre-tax and add sales tax at checkout (nexus determines where you collect). In the UK/EU, list VAT-inclusive prices to consumers. For VAT-inclusive pricing: Net Price = Gross / (1 + VAT rate) — a 60 GBP item at 20% VAT nets 50 GBP before any other cost. Enter the net figure as your price target in the calculator.
What net margin should my whole store target, not just one product?
Healthy direct stores run 15-25% blended NET margin after ads, overhead, and returns; marketplace-heavy sellers often run 10-20% with volume compensating. If hero products clear 35-45% individually (per this calculator), the store blends down to ~20% after overhead — exactly where you want to be. Below 10% blended, raise prices or cut acquisition cost before scaling.
Can I use one selling price calculator for retail, wholesale and online at once?
Yes — run it once per channel with that channel fee rate (direct 0%, Amazon 15%, eBay 13.25%, Etsy 6.5%, wholesale 50%-of-retail logic) and compare the suggested prices side by side. Most sellers then list at the highest channel-safe price everywhere, or set channel-specific prices where allowed. Bookmark all results with the copy button for your pricing sheet.

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