This calculator turns what a product costs you into a selling price, and shows what you keep from each sale.
At $48.00 your margin is 54.2%, 5.8 points under your 60% target. Pricing at $55.00 adds $7.00 a unit.
Selling price: $55.00
Markup and margin are easy to mix up. A 50 percent markup is only a 33 percent margin, so a price set with the wrong one can leave far less profit than planned. The calculator starts from your landed cost, keeps markup and margin in step as you type, and takes payment fees out so you see what is really left.
Use it when you price a new product or check whether an old price still works.
Every number this calculator uses, with an example.
Your price minus landed cost, divided by landed cost, as a percent. It is always a bigger number than gross margin for the same price.
A $22 product sold at $55 has a 150 percent markup and a 60 percent gross margin.
Your price minus product cost, divided by price, as a percent.
A $60 product that costs $24 has a 60 percent gross margin.
What one unit costs you once it is on your shelf: the product, plus shipping and duties to get it there, plus packaging.
An $18 product with $2.50 of freight and $1.50 of packaging has a $22 landed cost.
What it costs you to make or buy what goes in the box, including getting it to your warehouse.
The ROAS where ad revenue exactly covers your product, shipping, fees and the ads themselves. Below it, every sale from ads loses money.
If it is 2.1x, a campaign at 1.8x is losing money even if it looks busy.
Add up everything it takes to get one unit on your shelf: product + freight + packaging.
Divide landed cost by what is left after your margin: landed cost ÷ (1 − margin). That is the same price as landed cost × (1 + markup).
Take payment fees out of the price: price × (1 − fee %) − fee per order − landed cost. What is left pays for ads, discounts and profit.
Both measure the same profit. Markup divides it by your cost and margin divides it by your price. A product that costs $20 and sells for $40 has a 100 percent markup and a 50 percent margin.
Work back from what each sale has to pay for. If you sell through paid ads, offer discounts or ship for free, you usually need a gross margin of 50 percent or more, which is a markup of 100 percent or more. The break-even ROAS on the result shows whether your ads can work at that price.
Count the freight and duties it takes to get stock to you, because you pay them on every unit. Shipping to customers is better handled per order, in the break-even ROAS calculator.
Prices that end in .99 are common in ecommerce. The calculator rounds to the nearest one and shows its real margin, so you can see what the rounding costs or adds before you pick it.
The growth plan does it from the outside, with no logins, and shows what we would fix first and what it would cost.