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Product Pricing

Price a product from target profit per item and total cost.

About Product Pricing

Suggested price is built by layering cost, shipping and the target profit, then the margin is confirmed. Pricing to a profit floor keeps every product profitable instead of compensating via accidentally unprofitable best sellers.

Formula

Product Pricing

Price = unit cost + shipping + target profit

contribution
Profit remaining after the item arrives at the customer

Worked example

With the default values below, Product Pricing returns Suggested Price of $24.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Cost per item
12
Target profit per item
8
Avg shipping cost
4

Results

Suggested Price
$24.00
Contribution per Sale
$8.00
Margin on Price
33.3%

Step by step

  1. 1Values used
  2. 2Product Pricing
  3. 3Suggested Price= 24.00
  4. 4Contribution per Sale= 8.00
  5. 5Margin on Price= 33.3

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Product Pricing calculated?

Price = unit cost + shipping + target profit Suggested price is built by layering cost, shipping and the target profit, then the margin is confirmed.

Why does Product Pricing matter?

Pricing to a profit floor keeps every product profitable instead of compensating via accidentally unprofitable best sellers.

What values do I need to enter?

This calculator takes 3 inputs: Cost per item, Target profit per item, Avg shipping cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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