Pricing Calculator
Pricing a new product by gut feel usually means either leaving money on the table or getting undercut by a competitor who did the math. The Pricing Calculator works backward from your cost and the margin you want - factoring in commission, shipping, and packaging - to tell you the exact price to list at.
What each field means
- Cost Price
- Your landed cost per unit, before any fees.
- Target Profit Margin
- The profit you want to keep, expressed as a percentage of the final selling price - not of your cost price. Margin-on-price is the standard retail definition and what this calculator uses.
- Platform Commission
- The percentage the marketplace or gateway will deduct at the price you end up listing at.
- Shipping Cost / Packaging Cost
- Your real per-order logistics and packaging spend, added into the price so they don't silently erode your target margin.
- Other Costs
- Any extra per-unit cost specific to your business that isn't already covered - insurance, storage overage, prep fees, and so on - added into the price so it doesn't silently erode your target margin either.
How to use the Pricing Calculator
- Enter your cost price and the margin percentage you want to protect.
- Add the commission percentage for the specific marketplace you're pricing for - Amazon, Flipkart, Myntra and Ajio all charge differently, so price separately for each.
- Fill in shipping and packaging cost, plus anything else in Other Costs.
- Read off the suggested selling price, round it to a real listing price (e.g. ₹1,299 instead of ₹1,284), and re-check the margin holds.
The formula
Frequently asked questions
Why does the calculator say pricing isn't achievable?
If your commission percentage plus your target margin percentage add up to 100% or more, no selling price can satisfy both - lower the target margin, reduce costs, or choose a lower-commission channel.
Should I price the same product differently on each marketplace?
Usually yes - Amazon, Flipkart, Myntra and Ajio charge different commission rates for the same category, so the same target margin needs a different selling price on each platform.
Is margin calculated on cost or on selling price?
This calculator uses margin-on-selling-price, the standard retail definition - a 25% margin means 25% of the final price is profit, not 25% on top of cost.
What if I have a cost that isn't listed here?
Use the Other Costs field to add anything specific to your business - insurance, prep fees, storage overage, or any other per-unit cost - so it's baked into the price instead of quietly eating your margin.