Smart Pricing Assistant
Want to achieve a specific profit margin? Set your target margin and get the ideal selling price based on your current costs.
Recent Calculations
How to use this ecommerce profit tool
Enter your selling price, product cost, and any additional per-unit expenses (shipping, marketplace fees). The calculator instantly shows:
- Gross Profit per unit: Revenue minus total costs.
- Profit Margin (%) : The percentage of revenue that turns into profit — a key ecommerce KPI.
- Cost breakdown: See how much of your selling price goes to costs.
Use the Smart Pricing Assistant to determine the optimal selling price for a desired margin — essential for pricing strategies, promotions, and break-even goals.
Profit Margin Formulas
Total Cost per Unit = Product Cost + Additional Costs
Gross Profit = Selling Price − Total Cost per Unit
Profit Margin (%) = (Gross Profit ÷ Selling Price) × 100
Target Price based on desired margin = Total Cost per Unit ÷ (1 − Desired Margin %)
These formulas help ecommerce businesses set competitive yet profitable prices, ensuring sustainability and growth.
Frequently Asked Questions about Profit Margin
It varies by industry. Generally, net margins of 10–20% are healthy, while gross margins (before operating expenses) often range from 30–50% for ecommerce. This tool focuses on gross margin per unit.
Enter them under "Additional Costs per unit" to get an accurate margin. Even small fees can significantly reduce profitability, especially on low-ticket items.
Margin is profit as a percentage of selling price. Markup is the percentage added to cost to set price. This calculator focuses on margin — the most common profitability metric for ecommerce.
Absolutely. Enter your product cost (including base + fulfillment) and any transaction fees as additional costs. The tool helps you find the right price to maintain target margins.