Product Cost Calculator
Find your unit cost, your margin and the price that hits a target margin.
- Free
- No sign-up
- Values stay in your browser
Product Cost Calculator
Inputs
Purchase or production cost, before VAT.
A marketplace's fixed per-order fee, for example; before VAT.
Selling costs
As a share of the selling price.
Price and target
When on, the selling price is entered and shown including VAT.
Enter it to see your margin at that price.
Share of net revenue you want to keep.
Result
Enter the product cost to get the break-even price. Add a selling price and a target margin to see margin, markup and the target price.
- Break-even selling price
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- Any price below this loses money on each sale.
- Price for your target margin
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- Total cost per unit
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- Includes fees at your selling price, if entered.
- Contribution per unit
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- Profit margin
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- Contribution ÷ net revenue (excl. VAT).
- Markup
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- Contribution ÷ total unit cost.
- Commission and payment fees
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- Total unit cost
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- VAT in the price
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What is the difference between margin and markup?
Margin is profit as a share of revenue; markup is profit as a share of cost. That is why a 50% markup is only about a 33% margin.
Total unit cost Product + packaging + shipping + other + fixed payment fee + fee rates × selling price
Margin Contribution ÷ Net revenue (excl. VAT)
Frequently asked questions
How do I calculate product cost?
Unit cost is the purchase or production cost plus everything you spend to sell and ship it: packaging, shipping, payment and marketplace fees and any other per-order costs. This tool calculates the percentage fees from the selling price you enter.
How do I set a price from my costs?
Enter the margin you want; the calculator gives the price that delivers it once fees and VAT are accounted for. Adding a fixed percentage to cost usually falls short of the margin you were aiming for, because the fees grow with the price.
Is a 30% markup the same as a 30% margin?
No. A 30% markup means profit equal to 30% of cost, which is about a 23% margin. A 30% margin needs a markup of about 42.9%.
How should I handle VAT?
If your price includes VAT, leave "Prices include VAT" on and enter the product's VAT rate; the calculator takes VAT out of revenue. Enter costs before VAT, since VAT paid on purchases is offset against VAT charged on sales.
From cost to campaign, on the same numbers.
Connect your ad accounts and spend, conversions and ROAS read on one dashboard. You know your costs, so you decide which campaign is actually profitable.