Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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Product Pricing Calculator

Find the selling price needed to hit a target net margin after ecommerce costs, returns, fees, and ad spend.

Product pricing calculator

Work backward from your target margin. This includes fees, shipping, returns, fulfillment, apps, and ad cost instead of pretending COGS is the only cost.

Target net margin

COGS

Shipping cost

Fulfillment / pick-pack

Payment fee

Fixed payment fee

Return rate

Cost per return

Ad cost per order

App cost per order

Recommended price

$75.62

Expected net margin

30%

Profit per order

$22.69

Max CAC

$36.69

Break-even ROAS

2.06x

If the recommended price feels too high for the market, the math is pointing at a cost problem. Lower COGS, shipping, returns, or CAC before scaling the product.

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About this tool

What this free tool calculates

Use this when asking how much to charge for a product. It is stricter than a markup calculator because it includes the costs that usually get forgotten.

How to use the result

The target price solves for price after variable payment fees and the desired margin. If the target is impossible, lower the target margin or reduce costs.

Once you have a target price, pressure-test discounts, bundles, and free shipping so promotion mechanics do not erase the margin you just planned.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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