About

Pricing products correctly is the difference between solvency and bankruptcy. This tool allows merchants to determine the exact profitability of their inventory. Unlike simple calculators, this engine distinguishes between "Markup" (added to cost) and "Margin" (portion of revenue), a distinction that often trips up new entrepreneurs.

For high-volume sellers, calculating item-by-item is inefficient. This tool includes a Bulk Processing mode to handle lists of inventory data. It also accounts for often-overlooked erosion factors like transaction fees (PayPal, Stripe) and regional sales tax, delivering a True Net Profit figure.

Formulas

The relationship between Cost (C), Revenue (R), and Margin (M) is defined as:

M = R − CR

However, when transaction fees (F%) and fixed fees (F_fix) are involved, the Net Profit (P_net) becomes:

P_net = R − C − (R × F%) − F_fix

Reference Data

Term	Formula	Concept
Gross Margin	Revenue − CostRevenue × 100	Profit as % of Price
Markup	Revenue − CostCost × 100	Profit as % of Cost
Net Profit	Revenue − Cost − Fees − Tax	Real Cash in Pocket
Selling Price	Cost1 − Margin	Price needed for Target Margin

Frequently Asked Questions

Margin is calculated based on the final selling price, while Markup is based on the cost. Since the selling price is higher than the cost (hopefully), the denominator is larger for Margin, resulting in a lower percentage.

Prepare your data in a CSV-like format: "Cost, Revenue". Paste each item on a new line. The tool will parse each line and generate a summary table below.

Include payment processor fees (e.g., 2.9% + $0.30), marketplace referral fees (Amazon 15%), and shipping costs if you offer free shipping.

Yes. Switch to the "Reverse Calculation" tab. Enter your Cost and your Desired Margin %, and the tool will tell you what price you must charge.