How do I choose a selling price?
First calculate variable costs and a viable contribution target. Then test whether the resulting price fits customer demand and competitors.
SEOSTUDIO™ · FREE TOOL
Product Price Calculator™
Calculate a required net and gross price for your chosen contribution target.
Calculate nowWhat problem does this tool solve?
Adding a flat markup to sourcing cost misses percentage selling fees. The formula accounts for charges based on the future selling price.
What do you get?
Required price, expected contribution, actual margin after rounding and cost breakdown.
Practical questions on this topic
How do I price a Shopify product?
Enter sourcing, shipping, packaging, payment fees and other variable costs, then add your target contribution and applicable VAT assumptions.
How do marketplace commissions affect price?
Percentage commissions belong in the price equation, applied to the correct net or gross fee base rather than added as a fixed amount.
Can I discount a product without losing money?
Recalculate contribution at the discounted selling price while keeping sourcing and applicable fee assumptions in place.
Why is a 30% margin not a 30% markup?
Margin divides by revenue, markup by cost. To achieve a 30% margin, the required markup on cost is greater than 30%.
How should I apply price endings?
Round the required gross price up to a chosen step, then recalculate the contribution and margin using the rounded price.
Frequently asked questions
Can I calculate a gross price?
Yes. The entered VAT rate is applied to the net price.
Can I use it for marketplaces?
Yes, provided you enter the actual fee terms for your product and seller account.
Can I choose my target margin?
Yes. It is treated as a percentage of net sales revenue.
What if fees are too high?
If fee rate and target margin leave no positive denominator, the tool returns no finite price recommendation.
Does the calculated price guarantee sales?
No. Demand, competition and returns need separate evaluation.
Continue from here
Get a professional store analysis
Individual SEO/GEO analysis starts at €45 before applicable tax. Your initial inquiry is free with no obligation.