BUSINESS & PRICING CALCULATOR
Selling Price Calculator
Find the ideal selling price for your products based on your costs and desired profit margin. Set better prices and make more informed business decisions.
How to Calculate Selling Price
A selling price should cover all product-related costs while leaving enough profit to achieve your desired profit margin.
Selling Price Formula
Expected Profit Formula
Example Calculation
Suppose your product cost is $100, packaging costs $5, and seller-paid shipping costs $5. Your total product cost is $110. If you want a 25% profit margin based on the selling price, the calculator estimates the selling price needed to achieve that target.
| Component | Amount |
|---|---|
| Product Cost | $100.00 |
| Packaging Cost | $5.00 |
| Shipping Cost | $5.00 |
| Total Cost | $110.00 |
| Target Profit Margin | 25% |
| Recommended Selling Price | $146.67 |
| Expected Profit | $36.67 |
| Estimated Profit Margin | 25% |
Selling Price = $110.00 / (1 - 0.25) = approximately $146.67.
Expected Profit = $146.67 - $110.00 = approximately $36.67.
Amounts are rounded to two decimal places. Small differences may occur because of rounding.
Profit Margin vs. Markup
Profit margin is calculated as a percentage of the selling price. Markup is calculated as a percentage of the product cost. They are different pricing measurements and should not be confused.
Important Notes
This calculator considers only product cost, packaging cost, and seller-paid shipping entered in the form. The target profit margin is calculated from the recommended selling price.
Marketplace fees, payment processing fees, advertising, taxes, returns, refunds, labor, storage, and other operating expenses are not automatically included. Add applicable costs to the relevant input fields where possible, or account for them separately when setting your final selling price.
The recommended selling price is an estimate based on the information provided, not a complete accounting or financial forecast.
Frequently Asked Questions
How is the recommended selling price calculated?
The calculator adds product cost, packaging cost, and seller-paid shipping to determine total cost. It then divides total cost by one minus your target profit margin to estimate the selling price needed to achieve that margin.
Is profit margin the same as markup?
No. Profit margin measures profit as a percentage of the selling price, while markup measures profit as a percentage of the cost. The same profit amount can therefore produce different margin and markup percentages.
What is a selling price?
A selling price is the amount a customer pays to purchase a product or service.
What is the difference between margin and markup?
Margin measures profit against the selling price, while markup measures profit against the cost.
Can my target profit margin be 100%?
No. A 100% profit margin would require an infinitely high selling price when the product has a positive cost.
Does this calculator include marketplace fees?
No. This calculator currently considers product cost, packaging cost and seller-paid shipping. Marketplace and payment fees can be evaluated separately using the Product Profit Calculator.