Shopify Product Pricing Calculator
Work out the price you need to charge to hit your target profit margin.
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What does the Product Pricing Calculator do?
A product pricing calculator works backwards from the profit you want. Enter your product cost, shipping, ad spend per order, payment fees, refund rate and target net margin, and it returns the selling price that delivers that margin, the lowest price at which you break even, and a compare-at price for a discount badge.
1. How to use this product pricing calculator?
- 1Enter all the costs of one order, including ad spend per order.
- 2Set the net margin you want to keep.
- 3Use the recommended price, then check the compare-at price if you want to show a “% off” badge.
What each input means
- Product cost (COGS)
- per unit
- Shipping cost you pay
- per order
- Ad spend per order
- your cost per sale
- Payment processing fee
- % of the order
- Fixed payment fee
- per order
- Refund and chargeback rate
- % of orders
- Target net profit margin
- % of the price
- Discount you want to show
- % off the compare-at price
2. How is the product pricing calculator calculated?
- Fixed costs per order = product cost + shipping + ad spend + fixed fee
- Price = fixed costs ÷ (1 − payment % − refund % − target margin)
- Break-even price = fixed costs ÷ (1 − payment % − refund %)
- Compare-at price = price ÷ (1 − discount %)
A product costs $10, ships for $4 and takes $12 of ad spend, with a $0.30 fixed fee, a 2.9% payment fee, a 3% refund rate and a 25% target margin. Costs that do not scale with price are $26.30 and the percentage costs and margin take 30.9% of the price, so the price is $26.30 ÷ 0.691 = $38.06. The break-even price is $27.95.
3. Who should use this tool?
- New sellers setting a first price without knowing what margin it leaves.
- Stores raising prices after costs or ad spend went up.
- Owners planning a sale who want to know how deep a discount can go.
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Calculate POD profitProduct Pricing Calculator: frequently asked questions
How do I price a Shopify product?
Add up every cost of a sale, including ad spend, then choose a net margin and solve for the price. A price set only by doubling the product cost often ignores ad spend and fees, which is why it can lose money.
Should I use the price ending in .99 or .95?
Either can work. If you round, round up so the margin does not fall below your target.
Is the compare-at price honest?
Only show a compare-at price if the product was genuinely sold at that price. Fake “was” prices break advertising rules in many countries.
What if my competitors sell for less?
Check the break-even price. If it is above the market price, work on cheaper sourcing, lower ad cost or higher order value rather than matching a price that loses money.
Services that move these numbers
Winning Product Research
Products found and validated through Facebook, Google and TikTok ad research and spy tools.
Learn more →Product Sourcing
AliExpress and private-agent sourcing, supplier vetting, and connection through DSers, Spocket or Importify.
Learn more →Product Page Design
Product page layouts with benefit blocks, reviews, comparison tables, FAQs and a clear add-to-cart.
Learn more →Want an expert to look at your real numbers?
Book a free 30-minute call. You’ll leave with clear next steps, whether you hire us or not.