Product Pricing Calculator
Calculate your minimum break-even selling price, recommended target retail price, max discount before loss, and profit projections at scale.
Product Pricing Parameters
Factor in landed freight, packaging, fees, ads, and returns.
To calculate break-even selling price, sum all direct product costs, fixed fees, and ad CAC allowances, then divide by (1 minus total variable percentage fees expressed as a decimal). To calculate recommended target price, add your target profit margin percentage to the denominator.
What the Product Pricing Calculator Does
The Product Pricing Calculator is an advanced pricing strategy tool that determines both your absolute minimum break-even retail price and your optimal target price. By accounting for landed manufacturing costs, shipping subsidies, marketplace percentage commissions, fixed gateway fees, ad CAC allowances, and return reserves, it ensures every product price protects cash flow.
Who Should Use This Tool
Designed for ecommerce store managers, apparel brands, and direct-to-consumer entrepreneurs launching new product lines.
Break-Even & Target Pricing Formulas
Break Even = (Direct Costs + Fixed Fees + Ad CAC) / (1 - (Platform % + Return %)/100)
Target Price = (Direct Costs + Fixed Fees + Ad CAC) / (1 - (Platform % + Return % + Target Margin %)/100)
Worked Example: Apparel & Merch Brand
An apparel brand launches a embroidered jacket with $22.00 landed factory cost, $2.50 packaging, $1.50 unrecovered shipping subsidy, $12.00 Meta ad CAC, 15% platform/gateway fees, 5% return reserve, and a 25% target net margin.
Calculating Maximum Discount Allowance
Knowing your break-even price allows you to calculate the maximum promo code discount you can offer during Black Friday sales without operating at a loss:
Common Pricing Pitfalls
Frequently Asked Questions
What is a break-even price?
Break-even price is the exact retail price required to cover all product costs, shipping, fees, advertising allowance, and return reserves without generating a profit or loss.
How do I calculate maximum discount before operating at a loss?
Max discount % = ((Target Price - Break-Even Price) / Target Price) × 100.
Financial Disclaimer: MerchSites tools and guides provide estimates for product pricing, margin analysis, and expense planning. All calculations are performed locally in your web browser. Content is for educational purposes and does not constitute formal tax, legal, or accounting advice.