Home > Business Tools > Profit Margin Calculator
Product Pricing & Profit Margin Calculator
Take the hassle out of pricing your products with this free product pricing calculator. Our trusted pricing formula will help you find a fair price for your product – so you turn your entrepreneurial idea into a profitable small business and gain a bunch of happy customers.
Material Costs
Gather your receipts and add up how much money went into making your product. If your supplies
contributed to the creation of multiple products, divide it up so you have your per-item material cost.
$
Labor Costs
Set an hourly rate for your time and determine how many products you can make per hour. Divide your
hourly rate by that number to find your labor cost per item.
$
Shipping / Postage Costs
Calculate the price of shipping your product if you plan to operate online and offer free shipping. If
customers are going to pay for their own shipping, set this value to zero.
$
Third-Party Market Fees
Consider all the fees associated with a sale. These can be per-item costs such as selling on a
marketplace, processing credit card payments, etc.
$
Other Costs
Build in the cost of labels, packaging, advertising, and other essentials you need to run your business.
Try and break these numbers down so they represent only one product at a time.
$
$5.00 $15.00