Profit per unit
$17.11
Free calculator
Type cost and target margin, retail price updates live. No email, no gate, nothing leaves this page.
The calculator
The boxes start filled with an illustrative example, not a benchmark. Replace it with your own numbers.
What this unit costs you, landed and ready to sell.
Margin as a percentage of the selling price, not of cost. That is what makes this different from a markup calculation.
Retail price to charge
At $31.11, this covers your $14.00 cost and leaves $17.11 per unit at a 55.0% margin.
retail price = cost / (1 - target margin / 100)
Margin here is measured against the selling price, which is the standard retail definition. Markup, measured against cost instead, is a different and usually larger number for the same price.
See it on your own data Real numbers from your Shopify store, not a guess.
This is pure cost-plus math. It says nothing about what customers will actually pay for this product, or what competitors are charging for something similar. A price that is mathematically correct by this formula can still be a bad price if the market will not bear it.
Cost-plus pricing is a floor for the conversation, not the end of it. Once you know the price this formula produces, the real question is whether that number is close to, above, or below what similar products already sell for.
Questions
Cost-plus pricing, which is what this calculator does, starts from your cost and adds a margin on top. Value-based pricing starts from what the customer believes the product is worth and prices closer to that number, regardless of what it cost you. Most real retail pricing sits somewhere between the two: cost-plus sets a floor, and the market sets a ceiling.
It varies enormously by category and channel. Apparel and beauty products commonly carry higher margins than categories with heavy freight or thin competition, like commodity hardware. There is no single healthy number here, category and competitive pressure matter more than any rule of thumb.
Not necessarily. MSRP is the manufacturer's suggested retail price, a number the manufacturer publishes as guidance. The retail price is what you actually charge, and it can be higher, lower, or identical to MSRP depending on your own costs and positioning.
Keystone pricing is a fixed rule: double the cost, for a flat 50% margin, every time. This calculator lets you pick any target margin instead of being locked to 50%, which matters because a flat doubling rarely fits every product in a real catalog equally well.
No. This is a pre-tax price. Sales tax, VAT, or any other tax owed on the sale is calculated separately and is not part of the cost-plus math above.
Next
Upstream reads real per-SKU cost from your store and computes margin automatically, product by product, not one blended number typed in by hand.