What price should you charge to hit your target profit? This product pricing calculator includes product cost, packaging, payment fees, and tax so you can price items for shops, bakeries, and local product businesses.
How to use this calculator
- Enter product and packaging cost.
- Enter platform/payment fee and sales tax percentages.
- Enter desired profit per item and target margin.
- Review minimum price and margin-based price suggestions.
Formula
Minimum price solves for price after fees that covers costs plus desired profit. Margin price solves for a target profit margin on selling price after fees.
Example
An item costing $8 plus $1.25 packaging with 2.9% payment fee, 8% tax, $6 desired profit, and 35% margin target suggests pricing around $17–$18 depending on which goal you prioritize.
Frequently asked questions
- Which price should I use?
- Use the minimum price if you need a set dollar profit per item. Use the margin price if you want profit as a percent of selling price.
- Does this include shipping?
- Add shipping to product or packaging cost if you ship orders directly to customers.