Product Pricing Calculator
Work backwards from the contribution margin you want. Add your costs and applicable fee assumptions, then set a target margin to find a price that meets it.
Enter your selling costs
Discounts, tax, advertising and returns
Sale tax is removed from revenue. Enter costs net of recoverable VAT when appropriate. This tool does not determine tax obligations or recovery rights.
Offsite Ads applies to attributed orders only. For a capped charge, enter 0% and add the exact charge to advertising. Return loss includes the net refund, unrecoverable costs and any fee credits.
Estimated contribution per order
52.92% contribution margin
- Revenue excluding entered tax
- £24.00
- Product & fulfilment
- £11.30
- Fees & fee VAT
- £0.00
- Ads & return loss
- £0.00
- After allocated overhead
- £12.70
Contribution is what remains before general overhead and income or corporation tax. Calculation aid; not accounting or tax advice.
- Price for target margin
- £18.84
- Variable-cost break-even price
- £11.30
How to use this calculator
Enter your values in one currency. The result updates as you type. Check the fee and tax assumptions before using it for a pricing decision, then download a PDF if you want a record.
How the result is calculated
The engine searches prices in cents and verifies the result with rounded fee lines. The target is contribution margin before general overhead and income tax. A target may be impossible when discounts or fees absorb the sale.
Worked example
With £12 total variable cost and no fees, a 40% contribution margin needs a £20 selling price.
What should I include in my costs?
Include the costs that change with the item or order: materials, purchasing, making time, packaging, fulfilment and applicable fees. Allocate wider overhead separately. An omitted cost will make the estimate look better than it should.
Does this calculate my tax liability?
No. Entered tax treatment is an assumption for this calculation. The tool does not determine VAT registration, sales-tax nexus, tax rates by location or business income taxes. Check unusual situations with a qualified adviser.
Can I use USD?
Yes. Choosing US inputs uses dollars without converting amounts. Country-specific presets only apply where explicitly stated. Changing a symbol does not establish a platform fee or tax rule.
Questions about this calculation
What selling price gives a 40% margin?
With £12 included fixed costs and no fees, £20 gives 40% margin: £8 divided by £20. Enter actual percentage fees, postage and other costs in the tool when they apply; a cost-only shortcut does not model them.
Does the target include overhead automatically?
The target is contribution margin. The operating estimate deducts only entered allocated overhead. Keep any overhead allowance in a consistent cost basis and do not deduct it twice.