This price estimator calculates a selling price that targets a chosen gross margin after accounting for per-unit product and fulfillment costs plus a percentage-based selling fee. It helps physical-product businesses test prices before launching an item or approving a discount.
The result is a model price, not a market recommendation. Competitive positioning, perceived value, tax treatment, returns, and demand should be reviewed separately.
1. Enter fixed unit costs. Use values from the same product, SKU group, and reporting period.
2. Enter selling fee rate. Use values from the same product, SKU group, and reporting period.
3. Enter target gross margin. Use values from the same product, SKU group, and reporting period.
4. Review the result. The calculator updates automatically as inputs change. Use Reset to restore the example values.
The displayed value summarizes estimated selling price using the inputs entered above.
Use consistent units and matching reporting periods. Results are estimates for planning and review.
Given: $38 fixed unit costs, an 8% selling fee, and a 40% target margin.
Calculation: $38 ÷ (1 − 0.08 − 0.40) = $38 ÷ 0.52 = $73.08.
Result: A modeled selling price of $73.08 supports the assumptions.
A percentage fee grows with price, so it must be solved together with the margin target.
No. A finite price cannot produce a 100% margin when costs are positive.
Only if shipping revenue and shipping cost are treated consistently in the model.
Competitors may have lower costs, different fee structures, or accept a lower margin.
Round to a customer-friendly price, then recalculate actual margin at that price.