Free tool
Selling Price Calculator for Ecommerce
Work back from the margin you want to keep.
This selling price calculator starts with your costs and a stated target, then works back to the price required by that equation. It is useful when setting a retail price, testing a cost increase or checking whether a contribution target is mathematically possible.
The target needs a clear definition. Gross margin allows for product cost; contribution margin also allows for the variable selling costs you include. A cost-plus percentage belongs in the Markup Calculator. Here, the target is a share of the selling price. The Product Profit & Pricing Calculator helps put the target beside the economics of your current offer.
Target-based pricing · Entered cost stack · Demand response excluded
Calculation mode
Use a consistent scope and cost basis for every figure.
The example is illustrative. Replace it with your own figures; results update as you type. Your entries stay in this page until you choose to copy them.
Need help finding your figures in Shopify?
Copy an input checklist for Sidekick. Store reports may not contain every cost or scenario assumption; verify the source and mark missing figures rather than guessing.
Cost inputs
Target
How this tool works
How the target price is calculated
Choose the target definition first. Gross-margin mode divides product cost by one minus the target gross margin. Contribution mode adds product cost, other variable amounts and flat fees per sale, then divides by the share of price left after percentage fees and the target contribution margin. Both modes also show contribution after the other costs entered, so achieving a gross target does not conceal those costs.
Percentage fees apply to the solved selling price. The calculator rounds the algebraic price up to the pricing increment you select, then recomputes fees and achieved margins at that rounded price. If your provider charges on a different base, reconcile the costs first. When a target leaves no positive share to cover positive costs, there is no feasible finite price. The result does not establish customer demand.
Gross-target price = product cost ÷ (1 − target gross margin). Contribution-target price = fixed amounts per sale ÷ (1 − percentage fee rate − target contribution margin). Use decimal rates and a positive denominator. Round the resulting price up to the selected increment, then recompute achieved margins.
Pricing for a 30% contribution margin
Product and fixed-per-sale costs total $40. With a 3% fee on price and a 30% contribution target, the algebraic price is $40 ÷ 67%, or about $59.7. Rounding up to a one-cent increment gives a price displayed here as $59.7. At that underlying rounded price, the fee is about $1.8 and contribution is about $17.9, giving an achieved contribution margin just above 30%, before excluded costs.
Your full calculation
| Measure | Result · USD |
|---|---|
| Required selling price, rounded up | $68.7 |
| Product cost | $35.0 |
| Other variable costs | $10.0 |
| Fixed fees | $1.0 |
| Percentage fees at required price | $2.1 |
| Gross profit at required price | $33.7 |
| Contribution at required price | $20.6 |
| Achieved gross margin | 49% |
| Achieved contribution margin | 30% |
| Selected target margin | 30% |
| Price rounding increment | $0.0 |
Questions & answers
Understanding your result
How do I calculate selling price from cost and margin?
For a gross margin target, divide product cost by one minus the target margin as a decimal. A $60 cost and 40% gross margin target give $60 ÷ 0.6 = $100. Include the wider cost stack when the target is contribution.
Which costs belong in a contribution-based selling price?
Include product cost, fulfillment, fixed transaction charges and other variable amounts per sale. Add fees charged as a percentage of price in their separate field. If acquisition or returns are allocated into the cost stack, do so once on a clearly stated basis.
Why can a target margin be infeasible?
Positive costs need a positive share of the selling price to cover them. If percentage fees plus the target use all or more than all of the price, no finite positive price can satisfy the equation. Revisit the target, fees or cost structure.
Does the calculated price include a discount?
Treat the result as the realized selling price needed for the entered costs and target. If you expect to sell below the list price, use the Discount Margin Calculator to check what the actual discounted sale retains.