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Product Pricing Calculator

Find the minimum price you should charge for any product — with all fees and target margin included.

Etsy 6.5%, Amazon 15%, eBay ~13%.

Physical: 30-50%. Digital: 60-80%.

The pricing formula most sellers use

Price = (COGS + shipping + packaging + other + payment fixed fee) ÷ (1 − platform % − payment % − target margin %). This ensures that after all fees and costs, you keep the target margin on the selling price.

Most new sellers either charge too little (to "be competitive") or too much (round up to a "nice number"). Neither works. The correct price is the one that hits your margin after real costs.

Components of a real price

  • COGS — what you pay for the product
  • Shipping cost — what you pay to ship it
  • Packaging — boxes, tape, labels, inserts
  • Platform fee — Etsy 6.5%, Amazon 15%, eBay ~13%
  • Payment processing — typically 2.9% + $0.30
  • Target profit — what you actually want to keep

Worked example

COGS $15, shipping $4, packaging $0.75, platform 15%, payment 2.9% + $0.30, target margin 40%.

  • Fixed costs = $15 + $4 + $0.75 + $0.30 = $20.05
  • Variable rates = 15% + 2.9% + 40% = 57.9%
  • Price = $20.05 ÷ (1 − 0.579) = $47.63
  • Check: $47.63 × 0.421 = $20.05 fixed. Margin $19.05 = 40% of price. ✓

Without the formula, most sellers would guess $29.99 or $39.99 — both underprice the product and leave them below their target margin.

Margin vs markup

These are different and often confused.

  • Markup = (price − cost) ÷ cost. $20 → $40 is a 100% markup.
  • Margin = (price − cost) ÷ price. $20 → $40 is a 50% margin.

Retailers usually quote margin. Suppliers usually quote markup. Convert before comparing.

What this tool does not include

  • Advertising cost per sale (add separately to your margin target)
  • Returns and refunds (typically 3–10%)
  • Marketplace-specific fee tiers or category overrides
  • Taxes
  • Per-country fee differences

For accuracy on Amazon FBA, use the Amazon FBA calculator. For Etsy, use the Etsy fee calculator.

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Frequently asked questions

How do I price a product?

Start with unit cost (COGS + shipping + packaging), add platform fees, then add target profit margin. Price = total costs ÷ (1 − target margin).

What is a good profit margin?

Physical products: 30–50%. Digital products: 60–80%. Services: 40–60%. Below 20% leaves little room for ads and returns.

How do I account for platform fees?

Add marketplace fee percentage (Etsy 6.5%, Amazon 15%, etc.) plus payment processing (2.9% + fixed). Include them in the price calculation before setting margin.

Should I use cost-plus or value-based pricing?

Cost-plus is safe and simple. Value-based charges based on what customers will pay. Most small businesses start with cost-plus and adjust.

Estimates only. Real pricing depends on market positioning, competition, and perceived value. This is a cost-based planning model. Not financial advice.