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🏷️ Product Pricing Calculator

Enter your cost and the margin you want, and get the exact price to charge. Pricing backwards from a target margin keeps you from underpricing a product that has to fund paid ads.

$0$200
0%95%
Suggested Selling Price
$46.67
Round to charm price (.99)
Gross Profit / Order
$32.67
Markup
3.33×
Contribution Margin
$32.67
After all variable costs
To hit 70% margin on $14.00 in costs, price at $46.67. Round to a charm price (.99) and compare against competitor pricing.
Formula:Selling Price = Total Costs ÷ (1 − Target Margin %)
Industry Benchmarks
Excellent65%+ margin
Workable40–65% margin
RiskyBelow 40% margin
Recommended next step

How to use this tool

  1. Enter product + shipping cost. Your total landed cost from the supplier.
  2. Enter your target margin. The gross margin you want to keep, as a percentage — operators often use 65–75%.
  3. Read your suggested price. The calculator shows the selling price, the markup, and the profit per order needed to hit that margin.

Product Pricing Calculator — explained

The formula is Price = Cost ÷ (1 − Target Margin). To keep a 70% margin on a $15 product, you price at $50, not "$15 plus a bit". Most beginners underprice because they think in small markups instead of the margin paid ads actually require.

A 3–5× markup on landed cost is the rough rule of thumb for dropshipping, because the gap has to absorb the cost of acquiring the customer. A product you sell at only 2× cost almost never survives Meta ads.

Once you have a price, sanity-check it against competitors and against the perceived value of the offer — then round to a charm price (.99 / .95). The calculator gives you the floor; the market sets the ceiling.

Use this in context

Product Pricing Calculator — common questions

How do you price a dropshipping product?
Price = Cost ÷ (1 − Target Margin). For a $15 cost and a 70% target margin, that is 15 ÷ 0.30 = $50. This guarantees the margin you need before ad spend.
What markup should I use for dropshipping?
A 3–5× markup on landed cost is typical, because the margin has to cover customer acquisition. A 70% margin equals roughly a 3.3× markup.
Should I price with .99 endings?
Charm pricing (e.g. $49.99) reliably tests at least as well as round numbers and often better. Use the calculator price as your floor, then round to a .99/.95 ending.
Why not just add a fixed dollar amount to cost?
A flat markup ignores margin. Adding $10 to a $15 product is only a 40% margin — too thin for paid ads. Pricing from a target margin keeps the percentage right at every cost level.
Original content by First Sale Society — . Free, no paywall.