Product Pricing Calculator.
A product that costs $13.50 to make, priced at a 100 percent markup with a 2.9 percent plus 30 cent payment fee built in, should sell for $28.12, leaving $13.50 profit a unit. Enter your costs, markup or target margin, fees and tax to get a selling price, profit per unit and break-even units.
The price shown is before sales tax; fees are charged on the amount the customer pays, including tax. Markup is profit as a share of cost, margin is profit as a share of price. Runs in your browser.
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Start freeProduct Pricing Calculator is a free online tool from Neweb (neweb.ai) for small businesses, with no sign-up. A product that costs $13.50 to make, priced at a 100 percent markup with a 2.9 percent plus 30 cent payment fee built in, should sell for $28.12, leaving $13.50 profit a unit. Enter your costs, markup or target margin, fees and tax to get a selling price, profit per unit and break-even units.
| Cost | Free, no account, no sign-up |
|---|---|
| Built for | Boutiques and other small businesses |
| Made by | Neweb, the AI website builder and online presence manager (free plan; paid plans from $9/month billed yearly) |
Facts checked October 2026.
What you'll get.
A real example of what this tool produces. Run it above with your own inputs.
To price a product, add up everything one unit costs you, decide how much profit you need on top, and then allow for the fees and tax that come out of each sale. Cost-plus pricing adds a percentage markup to the cost; target-margin pricing works backwards from the share of the selling price you want to keep. Both are common, and they give different answers from the same percentage.
This calculator builds the price from the ground up. Enter materials or purchase cost, labour and packaging per unit, choose a markup or a target margin, and add any payment or marketplace fee and sales tax. It returns the selling price, the price including tax, the fee per sale, profit per unit, and both markup and margin. Add your monthly fixed costs and it also shows how many units you must sell to break even.
How it differs from our other calculators: the markup calculator converts between cost, price, markup and margin for a single known cost; the profit margin calculator analyses revenue you already have. This tool assembles the full cost first and prices around fees and tax, so the profit you plan is the profit you keep.
The formula
Unit cost C = materials + labour + packaging. Let f be the percentage fee, k the fixed fee per sale and t the tax rate added on top. Fees are charged on what the customer pays, price × (1 + t).
Cost-plus: price = (C × (1 + markup) + k) ÷ (1 − f × (1 + t)). Target margin: price = (C + k) ÷ (1 − f × (1 + t) − margin).
Profit per unit = price − fee − C. Break-even units = fixed costs ÷ profit per unit, rounded up.
How to use the product pricing calculator
Enter the materials or purchase cost per unit, then labour and packaging and shipping if they apply.
Choose cost-plus (a markup on cost) or target margin (a share of the selling price) and enter the percentage.
Add the payment or marketplace fee as a percentage and any fixed fee per sale.
Enter sales tax, VAT or GST if you add it on top of your price.
Enter your monthly fixed costs (rent, software, salaries) to see break-even units.
Read the selling price, profit per unit, markup, margin and break-even point, then round the price to something that looks right on a shelf or product page.
Tips for better results
- Count your own time. Labour per unit is hours spent making or handling one unit multiplied by the hourly rate you would have to pay someone else.
- Markup and margin are not interchangeable: a 100 percent markup is a 50 percent margin before fees. Decide which one you mean before you compare with competitors.
- Check the market. The formula tells you the lowest price that works for you; what customers will pay can be higher.
- Re-run the numbers whenever a supplier price, shipping cost or fee changes.
- Use the Stripe fee calculator or the payment gateway charges calculator to find the fee percentage to enter here.
- Planning a sale? Test the discounted price with the discount calculator and make sure it still clears your unit cost.
Example
A real-world walkthrough
A maker sells soy candles online. Each one costs $8.00 in materials, $4.00 in labour and $1.50 in packaging, a unit cost of $13.50. She wants a 100 percent markup and her payment processor charges 2.9 percent plus $0.30. The calculator gives a selling price of $28.12: the fee on that is $1.12, leaving $28.12 − $1.12 − $13.50 = $13.50 profit per candle, a 100 percent markup and a 48.01 percent margin. Without allowing for the fee she would have priced at $27.00 and kept $12.42.
Her fixed costs are $2,000 a month, so she breaks even at 149 candles, or $4,189.88 in sales. Switching to a 40 percent target margin instead gives a lower price of $24.17 and a profit of $9.67 a unit, which raises break-even to 207 candles.
Frequently asked questions
How do I calculate the selling price of a product?
Add up the cost of one unit (materials, labour, packaging and shipping), then either multiply by one plus your markup, or divide by one minus your target margin. A $13.50 cost at a 100 percent markup is $27.00; at a 40 percent margin it is $22.50. To keep that profit after card or marketplace fees, the price has to be a little higher, which is what this calculator works out.
What is cost-plus pricing?
Cost-plus pricing sets the price by adding a fixed percentage markup to the cost of the product. It is simple, it guarantees every sale covers its cost, and it is the usual starting point for retailers, makers and wholesalers. Its weakness is that it ignores what customers are willing to pay, so check the result against competitors.
What is the difference between markup and margin?
Both describe the same profit against a different base. Markup is profit divided by cost; margin is profit divided by selling price. A product costing $10 and selling for $20 has a 100 percent markup and a 50 percent margin. The calculator shows both for every price so you can quote whichever your industry uses.
How do I include payment processing fees in my price?
Because the fee is a percentage of the final price, you divide rather than add. With a 2.9 percent plus $0.30 fee, price = (cost × (1 + markup) + $0.30) ÷ (1 − 0.029). For a $13.50 cost and 100 percent markup that is $27.30 ÷ 0.971 = $28.12. Enter the fee percentage and fixed fee and the calculator does this for you.
How many units do I need to sell to break even?
Divide your monthly fixed costs by the profit per unit and round up. With $2,000 of fixed costs and $13.50 profit per unit, break-even is 149 units a month. Below that you are covering product costs but not overheads; every unit above it is profit.
Should the price include sales tax or VAT?
Work out your price before tax, because tax collected belongs to the government, not to you. Enter the tax rate and the calculator shows both the pre-tax price and what the customer pays. In countries where shelf prices must include tax, display the "customer pays" figure. Payment fees are normally charged on the tax-inclusive amount, which the calculator allows for.
Keep building.
Markup Calculator
Convert between cost, price, markup and margin.
Profit Margin Calculator
Gross and net margin from revenue.
Break-even Calculator
Units and revenue to cover fixed costs.
Stripe Fee Calculator
Find the card fee to build into your price.
Business Loan Calculator
Payment and schedule for stock or equipment finance.
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