Unit cost
$45.00
Ecommerce
Selling Price Calculator
Use this selling price calculator to set product prices with markup, margin, platform fees, discounts, taxes, and target profit clearly separated.
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Calculator
Calculate instantly
Price = (unit cost + fixed fee + target profit) / (1 - percentage fees - target margin)
Different modes adjust the denominator for margin, fees, and discounts while keeping tax separate from profit.
- Landed cost is divided by the number of units covered by the input.
- Markup is profit over cost. Margin is profit as a share of selling price. The calculator keeps fees, discounts, and tax separate so the target price is easier to audit.
- Tax is not treated as profit.
Inputs
Selling price scenario
Compare markup, margin, fees, discounts, tax handling, and break-even pricing.
Breakdown
Clear result breakdown
Review the values that explain the primary result.
Break-even price
$47.92
List price
$75.41
Selling price
$67.87
Tax amount
$5.43
Total fees
$3.71
Visual comparison
Price and profit comparison
Unit cost$45.00
Fees$3.71
Gross profit$19.15
Practical guidance
Insights for this scenario
Markup is not margin
Markup divides profit by cost; margin divides profit by selling price. A 50% markup is not a 50% margin.
Watch the denominator
High fees, discounts, and target margin can make a valid price impossible or very high.
Tax handling changes display
Tax-inclusive mode separates tax from revenue before calculating profit.
Step-by-step solution
Follow the calculation path from known values to final result.
- 1
Find unit cost
unit cost = (cost + shipping) / quantity
($40.00 + $5.00) / 1
Landed cost is divided by the number of units covered by the input.
$45.00
- 2
Solve the price mode
price denominator adjusts fees, margin, and discount
Markup is profit over cost. Margin is profit as a share of selling price. The calculator keeps fees, discounts, and tax separate so the target price is easier to audit.
$75.41
- 3
Separate tax and profit
profit = revenue before tax - cost - fees
Tax is not treated as profit.
$19.15 gross profit
Formula explorer
Price = (unit cost + fixed fee + target profit) / (1 - percentage fees - target margin)
Different modes adjust the denominator for margin, fees, and discounts while keeping tax separate from profit.
- C(currency)
- Cost: Unit landed cost.
- m(%)
- Margin: Target profit share of selling price.
- f(%)
- Fee rate: Percentage fee deducted from selling price.
Assumptions and references
Units
- currency
- percent
Assumptions
- Demand, competitor prices, returns, inventory costs, and overhead are not fully modeled.
- Tax is separated from profit.
- Fees are entered by the user and should match the sales channel.
Limitations
- Market demand, competitor pricing, returns, and inventory costs are not fully modeled.
Worked examples
Real-worldMarketplace product example
Known values
- Cost: $40
- Shipping: $5
- Fee: 4% + $1
- Target margin: 35%
Calculation
- 1. Find the unit landed cost.
- 2. Solve price after fees for the target margin.
- 3. Apply discount and tax settings.
Result and meaning
The calculator shows recommended price, break-even price, gross profit, and margin.
Learning guide
Understand the calculation
Concepts
- Markup
- Margin
- Break-even price
- Tax inclusive pricing
Tips
- Check margin after platform and payment fees.
- Model discounts before publishing sale prices.
- Use break-even as the minimum reference, not the ideal price.
Common mistakes
- Confusing markup with margin.
- Ignoring platform and payment fees.
- Treating collected tax as profit.
Educational notes
- The calculator distinguishes markup from margin and keeps percentage fees, fixed fees, discounts, and tax mode separate so the result is easier to audit.
- Markup and margin are not the same.
- Discount, target margin, and fee percentages must leave a positive denominator.
- Tax is shown separately and is not treated as profit.
Glossary
- Unit cost
- Landed cost per unit.
- Margin target
- Profit as a share of selling price.
- Fee rate
- Percentage fee deducted from selling price.
Trust panel
Calculator quality and review
- Reviewed by
- AZCalculate ecommerce pricing review
- Review date
- 2026-06-25
- References
- 2
- Trust score
- 91/100
- Formula verified
- Yes
- Risk level
- medium
- Category
- Ecommerce
- Calculator version
- 2.1
- Formula version
- 2.1
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Trust note
Planning estimate
Use this result as a practical estimate. Real-world conditions, local rules, measurement tolerance, and changing inputs can affect the final outcome.
Medium risk contextDifficulty: intermediateConfidence estimate: 91/100Reviewed 2026-06-25Reviewed by: AZCalculate ecommerce pricing reviewCalculator v2.1 / Formula v2.12 sources listed
References
Sources used for this calculator
Last checked: 2026-06-25 | Next review: 2026-12-25
Last checked: 2026-06-25 | Next review: 2026-12-25
Found something that does not look right?
We work hard to keep every calculator accurate and useful. If you notice a calculation error, missing option, or unclear explanation, please let us know so we can review and correct it promptly.
Calculator usage
Usage information loads after the calculator is ready.
FAQ
Selling Price Calculator FAQs
How does the selling price calculator work?+
It uses Selling price = (cost + shipping + fixed fee) / (1 - margin - fee) and calculates the result from the values you enter.
Can I copy or print the result?+
Yes. AZCalculate calculator pages include copy, share, and print actions.
What is the difference between markup and margin?+
Markup is profit divided by cost. Margin is profit divided by selling price. They are related but not the same.
What is break-even price?+
Break-even price is the price that covers cost and fees before profit.
How are percentage fees handled?+
Percentage fees are modeled as a share of the selling price, so they affect the denominator in target price calculations.
How are fixed fees handled?+
Fixed fees are added as a per-unit cost before the target price is solved.
Does tax count as profit?+
No. Tax is shown separately and is not treated as business profit.
What is discount reverse mode?+
Discount reverse mode calculates the list price needed before discount so the discounted price can still meet the target.
Why can a price become invalid?+
If target margin, percentage fees, and discounts consume 100% or more of the price, there is no valid denominator.
Can I use this for marketplace pricing?+
Yes. Enter marketplace fees, payment fees, shipping, tax mode, discounts, and target profit to estimate a practical selling price.
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