Product Selling Price Calculator
Free tool, no sign-up required
Selling Price
$0
Gross Profit
$0
Net Profit
$0
Actual Margin %
0.0%
Break-even Price
$0
Product Selling Price works out what to charge for a physical or digital product so that a target profit margin is actually hit, rather than guessing at a price and hoping the margin works out. It is used by e-commerce sellers, manufacturers, and anyone pricing a new product for the first time.
Formula
Selling Price = Cost of Goods / (1 - Desired Profit Margin %)
This differs from a simple markup calculation, which is Cost x Markup%. Markup is calculated on top of your cost, while margin is calculated as a percentage of the final selling price, so the same percentage means two different dollar amounts. Margin-based pricing is more accurate when your goal is a specific profit margin, since markup pricing systematically undershoots it.
Example
Example: your product costs $20 to make, and you want a 40% profit margin. Selling Price = 20 / (1 - 0.40) = $33.33. Selling at that price, $13.33 of every sale is profit, which works out to exactly 40% of the $33.33 selling price.
Industry Benchmark
Keystone pricing, doubling your cost for a 50% margin, is a commonly cited general starting point in retail, though the right margin for your product depends heavily on category, competition, and how much marketing spend needs to come out of it.
FAQ
What's the difference between margin and markup?
Markup is the percentage added on top of your cost to reach a selling price, calculated on cost. Margin is the percentage of the final selling price that is profit, calculated on the selling price itself. A 50% markup and a 50% margin are not the same number. A $20 product marked up 50% sells for $30, a 33% margin, while a $20 product priced for a 50% margin sells for $40.
What's a good margin for a physical product?
There is no single answer, but many retail categories commonly target somewhere in the 40% to 60% gross margin range to cover marketing, returns, and overhead on top of the product cost itself. Keystone pricing, a 50% margin, is often used as a simple general starting point before adjusting for your specific category and cost structure.
Related Tools
If You Don't Get Your First Sale Within 45 Working Days — We Work Free Until You Do
We stand behind our work completely. If your business doesn't receive its first sale within 45 working days of launch, we continue working — at no extra cost — until it does.
