Selling Price Calculator
Work out the price you need to charge to hit a target profit margin, after product cost, packaging, shipping and marketplace or payment fees. You can also price for a fixed profit per unit.
Results
Enter your numbers and press Calculate. Your results will appear here.
These results are estimates for planning, based only on the numbers you enter. They are not financial or accounting advice.
How to use this calculator
- Enter your product cost, packaging and shipping cost per unit.
- Add marketplace or payment fee percentages and any other per-unit costs.
- Enter your target profit margin or a fixed profit per unit.
- Press Calculate to see the selling price needed and your profit.
How it is calculated
Margin mode: selling price = fixed costs / (1 - fee rate - target margin rate)
Fixed-profit mode: selling price = (fixed costs + profit per unit) / (1 - fee rate)
Fees = fee rate x selling price
Margin = profit / selling price. Markup = profit / (fixed costs + fees)
All rates are shares of the selling price, so the fee and margin rates must add up to less than 100%
Worked example
- Fixed costs: PKR 800 product + PKR 60 packaging + PKR 250 shipping + PKR 40 other = PKR 1,150.
- Fees: 2% + 3% = 5%. Target margin: 25%. Selling price = 1,150 / (1 - 0.05 - 0.25) = 1,150 / 0.70 = PKR 1,642.86.
- Fees = PKR 82.14. Profit = PKR 1,642.86 - PKR 1,150 - PKR 82.14 = PKR 410.71, which is exactly 25% of the price.
- Markup on cost = PKR 410.71 / (PKR 1,150 + PKR 82.14) = 33.3%. A 25% margin is a higher markup, because markup is measured on cost.
- Fixed-profit mode: for PKR 300 profit per unit, price = (1,150 + 300) / 0.95 = PKR 1,526.32.
Frequently asked questions
What is the difference between profit margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of your cost. A 25% margin equals a 33.3% markup, so adding 25% to your cost does not give a 25% margin.
Why divide by (1 - fees - margin) instead of adding percentages to the cost?
Fees and margin are percentages of the selling price, not of your cost. Dividing the fixed costs by what is left of each rupee of sales gives a price that really delivers that margin after fees.
Which costs should I include?
Include everything you pay for each unit sold: product cost, packaging, shipping you pay, and any per-unit costs such as handling or an average ad cost per order. Put those extra costs in "Other fixed per-unit costs".
Why am I getting an error about percentages?
If fees plus your target margin add up to 100% or more, nothing is left to pay for your costs, so no selling price can work. Lower the fees or the target margin.
Does the price include tax?
No. Taxes are not calculated here. Check how tax applies to your business with an accountant.
When should I use fixed profit per unit?
Use it when you want a set amount of profit on each sale, for example PKR 300, rather than a percentage. The result still accounts for fees that depend on the selling price.
Should I round the recommended price?
Usually yes. Rounding up to a clean price point keeps at least your target profit. Rounding down reduces it, so check the result again.
About the Selling Price Calculator
Setting the right selling price is one of the most important decisions for any shop or online seller. Price too low and you lose money after delivery, fees and returns; too high and customers buy elsewhere. This calculator works out a selling price from your costs and the margin you want.
For online sellers in Pakistan, hidden costs such as COD charges, courier fees, payment gateway fees, packaging and ad cost per order must be included, otherwise the margin on paper disappears in reality.
Use the calculator to test different margins and see how each cost changes the price you need to charge.
Key Terms Explained
Cost price
What you pay for the product, including freight.
Margin
Profit as a percentage of the selling price.
Markup
Profit as a percentage of the cost price.
Variable costs
Costs per order such as delivery and packaging.
Payment fees
Percentage charged by gateways or marketplaces.
Break-even price
The price where profit is zero.
Step-by-Step Guide
Enter product cost
Including purchase freight.
Add per-order costs
Delivery, packaging, fees.
Set target margin
The profit you want.
Calculate
See the selling price.
Compare with competitors
Adjust if needed.
Common Mistakes to Avoid
Confusing margin and markup
They give different prices.
Forgetting delivery charges
Especially on free delivery offers.
Ignoring returns
Returned orders cost money.
Leaving out ad cost
Online sales often need ads.
Copying competitor prices
Their costs differ.
Rounding without checking
Psychological prices still need margin.
Practical Tips
Review prices quarterly
Costs change.
Price bundles
Increase order value.
Test small changes
Watch conversion.
Know your floor price
Never sell below it.
Factor in discounts
Leave room for sales.
Use the profit calculator too
For whole-store numbers.
Who Uses the Selling Price Calculator
Online sellers
COD and courier costs.
Shop owners
Retail pricing.
Wholesalers
Margins on bulk.
Manufacturers
Pricing new products.
More Questions
What margin should I target?
It depends on your category and costs; many online sellers aim high enough to cover ads and returns.
Is markup the same as margin?
No. Markup is on cost; margin is on selling price.
Should I include ad cost?
Yes, if you rely on ads for sales.
Can I use it for marketplaces?
Yes; include marketplace commissions and fees.
Why Use SoftBar Free Tools
Made in Faisalabad for people and businesses across Pakistan.
Free and fast
No sign-up, works instantly on any phone.
Private
Calculators run in your browser; your numbers are not stored.
Mobile friendly
Big buttons and simple forms for phones.
Built by a software team
The same team that builds POS and business software.
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