How to use this calculator
- Enter product cost plus fulfillment or production cost.
- Add extra order costs such as shipping, packaging, or ad cost.
- Enter your target net margin.
- Enter payment fee percentage to include processor cost.
Set a profitable Shopify selling price from your costs and target margin. This calculator estimates recommended price, break-even price, expected profit, and pricing health.
The recommended price is the minimum price needed to cover costs and reach the selected target margin after percentage fees.
If the recommended price is far above competitor pricing, consider cost reduction, bundling, or premium positioning.
With $44 total fixed cost, 35% target margin, and 2.9% payment fee, recommended price is about $70.85.
Start with all variable costs, add payment fees, choose a target margin, then compare the resulting price with customer willingness to pay.
Many stores target 20% to 35% net margin, but premium brands may target more and commodity products may operate lower.
You can price above competitors if your brand, quality, bundle, shipping, or guarantee creates enough perceived value.
Markup is profit over cost, while margin is profit over selling price. Pricing decisions should usually use margin.
Discounts reduce margin, so the regular price should leave enough room for promotions without making orders unprofitable.
| Metric | Use |
|---|---|
| Recommended Price | Price needed to hit margin goal. |
| Break-even Price | Lowest price before losing money. |
| Expected Profit | Profit at recommended price. |