Calculate your selling price.
Calculate the selling price needed to achieve your target profit margin, including product costs and additional per-unit expenses. Instantly review profit per unit, markup and pricing efficiency.
Your pricing inputs
Include every cost directly connected to one unit sold.
This price is calculated from total unit cost and the selected target margin. Taxes and marketplace-specific fees are not included unless entered as additional costs.
Analyzing your pricing target
Enter your costs and target margin to understand the selling price required to protect profitability.
A target price is only the beginning.
MarginLab monitors actual Shopify product margins, costs, discounts and profitability trends so you can see whether your real selling prices are protecting profit.
How to use this selling price calculator
Enter your product cost, choose your desired profit margin and include any additional expenses such as shipping or transaction fees. The calculator instantly recommends a selling price while showing your expected profit, markup and gross margin.
Add your product cost together with any additional expenses that affect profitability.
Choose the profit margin you want to achieve on every sale.
Review the recommended selling price together with profit per unit, markup and margin before pricing your products.
Selling price formula
The ideal selling price depends on your total costs and your desired profit margin. Pricing products correctly helps protect profitability while remaining competitive.
Selling price formula
This formula calculates the selling price required to achieve your target profit margin after covering all product costs.
Profit formula
Once you know the selling price, you can immediately determine the expected profit earned from every unit sold.
Example calculation
What is a good selling price?
A good selling price covers your product cost, protects your target margin and still feels reasonable to customers. The right price depends on your market, competitors, brand position and operating costs.
Too low
Low margins leave little room for discounts, fees, refunds or unexpected cost increases.
Acceptable
The price may be workable, but profitability can become fragile if costs increase.
Healthy
A strong pricing range for many ecommerce products, with better protection against costs.
Premium
High margins can be excellent if the market supports the price and sales volume remains stable.
- Your selling price should cover product cost and additional expenses.
- Higher margins provide more room for discounts and promotions.
- Pricing too low can increase sales while reducing actual profit.
- MarginLab helps Shopify merchants monitor whether product prices still protect profitability over time.
Common selling price mistakes
Setting the wrong selling price is one of the fastest ways to reduce profitability. Many businesses focus on increasing sales while overlooking the impact that poor pricing decisions have on long-term profit.
Pricing too low
Low prices may increase sales volume but often leave little room for profit after fees, discounts and operating expenses.
Ignoring total costs
Many businesses calculate prices using only product cost and forget shipping, payment processing fees, packaging and other expenses.
No target margin
Without a clear profit margin goal, prices become inconsistent and profitability becomes difficult to manage as costs change.
Never reviewing prices
Supplier costs, inflation and competition constantly change. Regular price reviews help maintain healthy margins over time.
Pricing strategy matters more than you think
Your selling price directly affects revenue, profit margin and long-term business growth. Even small pricing mistakes can significantly reduce profitability when multiplied across hundreds or thousands of orders.
Common pricing challenges
- Keeping prices competitive without sacrificing profit.
- Covering shipping, payment processing and operating costs.
- Adjusting prices when supplier costs increase.
- Maintaining healthy margins during promotions and discounts.
- Knowing when a product is underpriced or overpriced.
How MarginLab helps
MarginLab continuously analyzes product costs, selling prices, discounts and profitability across your Shopify store. Instead of relying on manual calculations, it identifies products with weak margins and highlights opportunities to improve pricing.
Use this calculator to price a product. Use MarginLab to continuously monitor whether your pricing strategy is protecting your margins as costs and customer behavior change.
Related free calculators
Explore more free pricing and profitability calculators from MarginLab to optimize product pricing, margins and business performance.
Profit Margin Calculator
Measure how much profit you keep from every dollar of revenue.Markup Calculator
Convert markup into margin and price products with confidence.Gross Margin Calculator
Calculate gross margin using revenue and cost of goods sold.Discount Calculator
See how discounts affect your selling price and profitability.Break-even Calculator
Calculate how many sales you need before generating profit.Net Profit Calculator
Estimate your final profit after operating expenses and other business costs.Frequently asked questions
Here are the most common questions about selling price, product pricing and profit margin.
How do you calculate selling price?
To calculate selling price, divide your total cost by one minus your desired profit margin. For example, if your cost is $50 and you want a 30% margin, the selling price is $71.43.
What is the difference between margin and markup?
Margin is the percentage of the selling price that becomes profit. Markup is the percentage added on top of cost. They are related, but they are not the same.
What should I include in product cost?
Product cost should include the item cost plus any expenses required to sell it, such as shipping, packaging, transaction fees or fulfillment costs.
What is a good profit margin for ecommerce?
A healthy ecommerce margin often falls between 30% and 50%, but the right margin depends on your industry, competition, brand positioning and operating costs.
Can I use this calculator for Shopify?
Yes. This selling price calculator works for Shopify merchants, WooCommerce stores, Amazon sellers and any ecommerce business that needs to price products profitably.
Does MarginLab help monitor product pricing?
Yes. MarginLab helps Shopify merchants monitor product costs, selling prices, margins, discounts and profitability so pricing decisions stay connected to real profit.
A selling price is only good
if it protects your profit.
This calculator helps you find a profitable selling price for one product. MarginLab helps Shopify merchants monitor every product price, cost, discount and margin change automatically, so you can quickly see which products are priced correctly and which ones are leaking profit.
Product Margin Tracking
Monitor whether each product price still protects your target margin over time.
Cost Change Detection
Spot when rising product costs quietly reduce profitability.
Pricing Intelligence
Find weak margins, underpriced products and pricing opportunities inside your Shopify store.
✓ No credit card required
✓ Built for Shopify merchants