Product Pricing Calculator

Know What to Charge for Your Product

Add your costs, choose your profit, and see a suggested selling price.

Product pricing calculator

Works for handmade goods, resale inventory and digital products alike.

What this calculator helps you do

This calculator turns the real cost of making one item into a selling price you can defend. It adds materials, packaging, your making time, a share of overhead and any selling fees before applying the margin you want.

It suits makers, e-commerce sellers, food producers and anyone selling a physical or digital product who suspects their current price is a guess.

How to use it

  1. Enter what one unit costs you in materials, then packaging and shipping supplies.
  2. Add your making time and the hourly rate you want to be paid for it.
  3. Include monthly overhead and the number of units you expect to sell in a month so overhead is spread per unit.
  4. Add platform or payment fees as a percentage, then set the profit margin you want to keep.
  5. Switch to Detailed mode to add any cost rows specific to your product.

What your result means

The recommended price is the lowest price that covers every cost you entered and still leaves the margin you asked for. Profit per unit shows the dollars you keep from one sale.

If the price looks high for your market, the number is telling you something about your costs or volume rather than settling the question. Try a higher monthly unit estimate, a lower margin, or cheaper packaging and compare the results.

Quick example

A candle maker enters $4.20 of wax and wick, $1.10 of packaging, 15 minutes of labor at $24 an hour, $600 of monthly overhead across 300 units and 3% payment fees. At a 40% margin the calculator suggests a price near $21.

Illustrative example only — the numbers are fictional and not a recommendation.

Helpful tip

Packaging, shipping supplies and transaction fees are the costs most often left out. Add them before you set your margin, or that margin quietly disappears at checkout.

How to price a product

Good pricing works in one direction: costs first, then fees, then profit. Add up everything one unit costs you, add the slice of your monthly overhead that unit should carry, then work out the price that leaves your target profit after payment fees are taken out. Guessing from a competitor's price tag skips all three steps.

Notice that you can't simply add 40% to your cost to get a 40% margin. Margin is measured against the selling price, so the calculator divides rather than multiplies — that's why the recommended price is higher than a naive markup.

Understanding product costs

  • Materials or inventory — the physical stuff, or the wholesale price you paid for a resale item.
  • Direct labor — your making time, priced at a real hourly rate.
  • Packaging and shipping supplies — boxes, mailers, labels, tissue, tape.
  • Other variable costs — anything that grows with each sale, like a per-unit licence or breakage allowance.
  • Overhead — rent, software, insurance and subscriptions, divided by the units you expect to sell that month.

Margin versus markup

Markup compares profit to your cost. Margin compares profit to your selling price. They describe the same dollar of profit from different angles, and confusing them is the fastest way to under-price.

A product that costs $10 and sells for $15 carries a 50% markup but only a 33% margin. The calculator shows both so you can talk to suppliers in markup and to your accountant in margin.

A worked example

Say a candle costs $8.00 in materials, $4.00 in labor, $2.00 in packaging, $1.00 in shipping supplies and $0.50 in other costs — $15.50 of direct cost. With $500 of monthly overhead across 100 units, another $5.00 is allocated per unit, so the true cost is $20.50.

Targeting a 40% margin with a 3% + $0.30 payment fee, the recommended price is roughly $36.49. After fees of about $1.39, you keep around $14.60 per candle — about $1,460 of profit on 100 sales. Load the sample numbers above to see it live.

Common pricing mistakes

  • Leaving your own labor out of the cost entirely.
  • Forgetting overhead, so profit quietly pays the rent instead of paying you.
  • Ignoring payment and marketplace fees, which can swallow 3–15% of every sale.
  • Adding a percentage to cost and calling it a margin.
  • Copying a competitor whose costs and volumes are nothing like yours.
  • Never revisiting prices when material costs rise.

Frequently asked questions

Should I include my own labor in the cost?

Yes. If you don't pay yourself for making time, your profit is really just wages in disguise. Pick an hourly rate you'd be happy to pay someone else and use it.

What profit margin should I aim for?

Many physical-product businesses target 30–50%, while digital products often go far higher because there's little cost per unit. Start with 40% and adjust to what your market accepts.

Do I need to know my exact monthly units?

No — an honest estimate is enough. Try a low, medium and high number to see how sensitive your price is to volume.

Does this handle sales tax or VAT?

No. Tax is collected on top of your price and passed on, so it isn't part of your cost or profit calculation here.

Is my data saved anywhere?

No. Every calculation runs in your browser. Nothing is stored, sent or shared.

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