webkodingBrowse plugins

Free tool

Selling price calculator

The cost and the margin you want to keep. The price to charge comes out — and why adding the margin percentage to the cost does not get you there.
Price to charge
US$100.00
Profit per item
US$60.00
Markup this needs
150%

How it is calculated

Price = cost ÷ (1 − target margin).

Adding the margin to the cost does not work: $40 plus 60% is $64, which is a 37.5% margin, not 60%. For 60% you need $100.

Questions

Why can the margin not be 100%?

Because margin is a share of the price. Keeping 100% of the price would mean the item cost nothing — the formula divides by zero, and the price would be infinite.

Should I price from margin or markup?

Price from the margin you need to keep, then check the markup it implies. Your fixed costs and advertising are paid out of margin, so that is the number that has to be large enough.

Where do payment fees go?

Payment fees are a percentage of the price, so they reduce the margin rather than add to the cost. Subtract them from the target margin — aim for 63% if you want 60% left after a 3% fee.

If you run WooCommerce

WooFinance reports the margin each product actually earned in your WooCommerce store, so you can see which prices need to move. WooFinance is our plugin; the calculator above works the same whether you use it or not.

Related calculators

Every free tool

Marketplace and payment fees