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Visit tool →Product Pricing Calculator (Cost + Margin)
Cost-plus shelf price implied by landed cost plus target gross margin %.
Calculator
Suggested selling price
$42.86
Results are simplified estimates for educational purposes only and should not be treated as financial, accounting, legal, or tax advice. See our disclaimer for details.
Overview
Use when procurement gave you dependable COGS and you need margin guardrails—not when brand premium is the whole thesis.
Formula
Cost ÷ (1 − desired gross margin %) when margin stays below 100%.
Example calculation
Using the default example values from the JSON seed for this tool:
- Product cost
- 18
- Desired gross margin
- 58
Result: $42.86 (Suggested selling price)
How to interpret this result
Cost-plus price to hit a target gross margin percentage.
Market price may be lower—this answers “what margin does my cost support,” not “what will sell.”
Marketplace fees belong in your cost base when selling on platforms.
When to use this calculator
- When you know landed cost and want a price that hits a margin target
- Before you list on a marketplace that takes a clear percent per sale
- When the market price is noisy and you still want a cost floor
- When you rebundle accessories and need a new blended margin check
Rule of thumb
Cost-plus answers “what margin does this COGS support?” Market price still has its own ceiling.
Terms used in this calculator
- Gross margin
- Sales minus COGS as a percentage of revenue—nothing below gross profit counted here.
- AOV
- Average order size: slice revenue divided by order count—with tax/shipping counted the same each month.
Common mistakes
- Confusing markup percent with gross margin percent.
- Omitting marketplace take rates in the cost base.
- Picking margin the market will not support without differentiation.
What to do next
Use margin or break-even unit math when list price must clear operating goals too.
How to improve this result
- Run lightweight price tests where inventory risk is manageable.
- Battery-included bundles sometimes lift gross dollars even when SKU count rises.
- Pressure-test competitors’ offers for shipping and fees—not only list price.
Recommended tools
Useful tools for this calculator
These tools are related to the topic of this calculator. Some links may be partner links.
ProfitWell
Pricing and retention resources for subscription businesses.
Visit tool →Shopify
Partner linkCommerce platform for building and scaling an online store.
Visit tool →FAQ
- Is this GAAP-compliant pricing?
- No—it's rough COGS arithmetic. Brand, demand elasticity, competitor promos decide market price.
- Where do marketplace fees go?
- Add them into landed cost unless you purposely treat them afterward.
- What if demand caps price below calculator output?
- You either shave margin targets, cut COGS, or reposition the SKU.
- Does VAT change this?
- Model tax-exclusive or inclusive consistently versus how you merchandise.
- Can margin % exceed 95?
- The formula clamps—check inputs when math looks impossible.
Related calculators
Break-Even Calculator (Units)
Units sold so contribution margin covers fixed overhead for that horizon.
Open calculator →Landing Page Conversion Rate Calculator
Goal completions divided by landing visits for the slice you counted.
Open calculator →Shopify Profit Margin Calculator
Margin percent after product, shipping, and payment costs measured against selling price.
Open calculator →Affiliate disclosure
Disclosure: Some links on this page may be affiliate links. If you sign up or make a purchase through these links, FounderCalc may earn a commission at no extra cost to you. We only recommend tools that are relevant to the calculator topic.