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Pricing Calculator

Build your selling price from real costs plus the margin you choose, with a slider that updates the price instantly.

Your numbers

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Slide between 10 and 80 percent, or type any margin under 100.
Your Results
Suggested selling price-
Total cost-
Minimum selling price-
Profit per sale-
Expected margin-

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How is this calculated?

Margin pricing divides total cost by what is left after the margin takes its share of the price.

Total Cost = Product + Shipping + Advertising + Platform Fees + Payment Fees + Other
Suggested Price = Total Cost / (1 - Margin % / 100)
Minimum Price = Total Cost (a margin of zero)
Profit Per Sale = Suggested Price - Total Cost

Worked Example

Costs: product $30, shipping $9, advertising $12, platform fees $3, payment fees $2. Total cost = $56. Desired margin: 30 percent.

Suggested price = $56 / (1 - 0.30) = $56 / 0.70 = $80.00. Profit per sale = $80 - $56 = $24, which is exactly 30 percent of the $80 price.

Notice the difference from markup: adding a 30 percent markup to $56 would give only $72.80 and a thinner real margin.

How to Calculate a Selling Price

Add up everything one sale costs you, then decide the margin you want to keep as profit. Because margin is a percentage of the final price, not of the cost, the formula divides: price equals total cost divided by one minus the margin rate. At a 30 percent margin you divide by 0.70; at 50 percent you divide by 0.50, which doubles your cost.

The minimum price shown is simply your total cost: sell below it and every order loses money before rent or any other fixed cost. The Markup Calculator explains why a percentage added to cost is not the same margin, a mix-up that quietly underprices many products.

Why Pricing From Margin Matters

Pricing backwards from a target margin guarantees the profit is in the price before you sell anything, instead of hoping costs behave. It also gives you a disciplined way to handle discounts: you can see exactly how much margin a 10 or 20 percent promotion gives away, and what it does to your break-even volume.

For online sellers especially, advertising and fees are real per-sale costs. Leaving them out of the price is the most common reason a "busy" store ends the month with nothing, which the Shopify Profit Calculator demonstrates order by order.

How to Improve Your Numbers

Test prices around the suggestion rather than treating it as sacred: the right price also depends on what customers will pay and what competitors charge. If the suggested price looks unsellable, the problem is usually the cost stack, so negotiate product and shipping costs or reduce ad dependence. Recheck the price whenever a supplier, platform or ad cost changes.

Frequently Asked Questions

What is the difference between margin pricing and markup pricing?

Markup adds a percentage of cost. Margin pricing divides cost by one minus the margin rate, so the profit is the chosen percentage of the final price. A 30 percent margin needs a higher price than a 30 percent markup.

What margin should I choose?

Enough to cover your fixed costs, taxes and risk, with something left to grow. Many product sellers work in the 20 to 50 percent range; services often run higher. Use the Break-Even Calculator to check the volume your chosen margin requires.

Why does the price jump so much at high margins?

Because margin is a share of the price itself. Going from a 70 to an 80 percent margin means the cost portion halves from 30 to 20 percent of the price, so the price must rise sharply to keep the same profit share.

Should fees and advertising really be in the price?

Yes, if they are costs of making the sale. A price that ignores them only looks profitable until the ad bill and platform statement arrive.

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