What should I price my product/service in order to be profitable?

Work out what you need to charge per item to cover your costs and hit your target profit margin.

Product Cost/Item

Cost of goods ?

What it costs you to acquire or produce a single unit.

Advanced options 2

Packaging ?

Boxes, bags, labels, and other packaging materials per item.

Shipping ?

Cost to ship a single item to the customer.

Monthly Cost

Advanced options 3

Advertising/marketing fees ?

Total monthly spend on ads and marketing.

Software/Website fees ?

Monthly cost of your storefront, subscriptions, and tools.

Other overhead expenses ?

Any other recurring monthly business costs not listed above.

Sales/Profit

Expected items sold per month ?

How many units you expect to sell in a typical month.

Desired profit margin ?

The profit margin you want to achieve on each sale.

Enter your values and select Calculate.

The optimal price shown here is the amount you'd need to charge per unit so that, at your expected sales volume, your item costs and monthly fixed costs are covered and the profit margin you asked for is left over. It does not include taxes, payment processing fees, returns, or discounts, so treat it as a starting point rather than the final sticker price.

Two inputs move this number the most: expected items sold per month and desired profit margin. Selling fewer units means your fixed costs (advertising, software, overhead) get spread across a smaller base, pushing the price up. Asking for a higher margin does the same. If the price looks too high for your market, those are the two levers worth testing first.

This is a snapshot based on the numbers you entered today. Costs change, ad spend fluctuates, and sales volume rarely stays flat month to month, so it's worth revisiting this whenever one of those inputs shifts meaningfully — a new supplier cost, a change in ad budget, or a stronger or weaker sales month than expected.

Having a defensible price floor is more than most sellers work out before setting a number, so use this as a baseline to compare against what competitors charge and what customers are actually willing to pay. Small adjustments to margin or cost control, made consistently, add up over a year of sales.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.