Calculate the selling price using cost-plus pricing. Enter total cost and desired markup percentage to find the optimal retail price and margin.
Cost-plus pricing is the simplest and most straightforward pricing strategy: take your total cost per unit and add a markup percentage to determine the selling price. It guarantees a profit on every sale as long as your cost calculation is accurate.
For e-commerce sellers, total cost includes not just the product purchase price but also shipping, fees, packaging, and any other per-unit expenses. This calculator accounts for all cost components and applies your desired markup to determine the selling price.
While cost-plus pricing ignores market demand and competitor pricing, it serves as an excellent floor price — the minimum you should charge to achieve your target profit. Many sellers use cost-plus as a starting point and then adjust based on market conditions. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
Cost-plus pricing ensures you never sell below cost. This calculator includes all e-commerce cost components that many sellers forget, giving you a more accurate base price. Use it to establish minimum prices and compare against market rates. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Total Cost = Product Cost + Shipping + Packaging + (Selling Price × Fee%) Selling Price = Total Fixed Costs / (1 − Fee% − Markup Margin) Alternatively: Selling Price = Total Cost × (1 + Markup%)
Result: Selling Price: $28.24 | Profit: $9.41 | Margin: 33.3%
Fixed costs: $12 + $3 + $1 = $16. With a 15% platform fee and 50% markup target: Selling Price = $16 / (1 − 0.15) × 1.5 = $18.82 × 1.5... Using simple cost-plus: Total estimated cost including 15% fees on a $24 price = $16 + $3.60 = $19.60. Markup: $19.60 × 1.50 = $29.40. Iterating converges to ~$28.24.
Cost-plus pricing is internally focused — it ensures profitability per unit. Value-based pricing is externally focused — it charges based on the perceived value to the customer. The best e-commerce pricing strategies use cost-plus as a floor and value-based pricing as a ceiling, setting the actual price somewhere in between.
Platform fees create a circular calculation because they're based on the selling price. To solve this: Fixed Costs / (1 − Fee Rate) gives the break-even selling price. Then apply your markup on top. This approach ensures your markup is truly above all costs including platform fees.
Advanced sellers adjust their cost-plus markup dynamically based on demand, competition, and inventory levels. During peak seasons, increase the markup. During clearance, reduce it to just above break-even. This hybrid approach captures more value while maintaining a profitability floor.
Cost-plus pricing means adding a fixed percentage markup to your total cost to arrive at the selling price. If your total cost is $20 and you apply a 50% markup, the selling price is $30. It's the simplest pricing strategy and guarantees a profit on each sale.
E-commerce markups typically range from 50–200% depending on the product category. Low-competition niches and branded products can command higher markups. Commoditized products with many sellers usually require lower markups to remain competitive.
Markup is profit as a percentage of COST. Margin is profit as a percentage of SELLING PRICE. A 100% markup equals a 50% margin. A 50% markup equals a 33.3% margin. Margin is always lower than markup for the same dollar profit.
Platform fees are tricky because they're a percentage of the selling price, creating a circular dependency. The best approach is to calculate your fixed costs, then divide by (1 − fee rate) before applying markup. This ensures fees are fully covered.
Cost-plus pricing ignores what customers are willing to pay. If the market will pay $50 for your product but cost-plus says $30, you're leaving money on the table. Use value-based or competitive pricing alongside cost-plus to find the optimal price.
If costs vary (seasonal shipping rates, bulk discounts, currency fluctuations), use average costs over a planning period and add a buffer. Review and adjust prices quarterly. For highly variable costs, consider a cost-plus range rather than a fixed price.