Product Pricing & Profit Calculator

For small and mid-sized businesses. Calculate your true net profit after markup, payment processing fees, and taxes -- and find the selling price you actually need to charge.

Product & Markup

Cost of goods (COGS)What you pay to acquire or produce one unit -- wholesale cost, manufacturing cost, or landed cost including shipping to you. Do not include your own labor here unless you track it separately.

Markup % (on cost)The percentage added ON TOP of your cost. A 110% markup on a $40 item = $44 added = $84 selling price. Markup is always calculated from cost. Common retail: 50-200%.

Margin % (of selling price)Profit as a percentage OF the selling price. A 50% margin on an $80 item = $40 profit. Margin is always lower than markup % for the same product. Retailers often target 40-60% gross margin.

Markup vs Margin110% markup = 52.4% margin. They are different numbers for the same profit. Markup is simpler to calculate from cost; margin is more useful for comparing profitability across products.

Cost of goods per unit (COGS)$40.00

Pricing mode

Target markup %110%

Business Type & Tax

Sole Proprietor / LLCBusiness profit flows to your personal return. You pay income tax + self-employment tax (15.3% for SS/Medicare) on net profit. Combined effective rate often 30-40% including state.

S-CorporationProfit passes through to owners but you pay yourself a reasonable salary (subject to payroll tax). Remaining profit avoids SE tax. Effective rate often lower than sole prop.

C-CorporationCorporate-level tax (21% federal) on profit, then dividend tax if distributed to owners. Double taxation at federal level. Less common for small businesses.

Combined tax rateSet this to your all-in effective tax rate: federal income + state income + self-employment (if applicable). Applied to net profit after all fees. Consult your accountant for your specific rate.

Business structure

Sole Prop/LLC: profit taxed as personal income + self-employment tax. Set your combined effective rate below.

Combined tax rate (income + SE)30%

Payment & Platform Fees

How fees workFees are deducted from the selling price before you receive payment -- the processor takes their cut first. Enable each channel you sell through. The comparison table shows your net profit on each channel side by side.

Stripe / SquareStandard rate: 2.9% + $0.30 per transaction for card-not-present (online). In-person swipe is 2.6% + $0.10. High volume merchants can negotiate lower rates.

PayPalStandard rate: 3.49% + $0.49 for most transactions. Lower rates available for high volume. PayPal Friends & Family has no fee but violates ToS for business transactions.

AmazonReferral fee typically 8-15% depending on category. Most categories are 15%. Electronics and some others are lower. Does not include FBA fulfillment fees if applicable.

Etsy6.5% transaction fee + $0.20 listing fee per item sold. Offsite Ads add 12-15% if Etsy advertises your listing. Pattern (own website) charges differently.

Stripe / Square

% flat

PayPal

% flat

Amazon

% flat

Etsy

% flat

Custom channel

% flat

Target Profit Solver

How this worksEnter the net profit you want to keep per unit after all fees and taxes. The calculator solves for the exact selling price you need to charge to achieve that take-home amount.

Why it mattersMost business owners set a price and hope for the best. This tool works backwards -- start with what you need to keep and calculate what to charge. Especially useful when fees and taxes are eating into margins you didn't account for.

I want to keep $ _____ per unit after fees & tax

Selling Price

based on your markup

Gross profit

before fees & tax

Gross margin

% of selling price

Total fees

all channels combined

Tax owed

on net profit after fees

Net profit (you keep)

after all fees & tax

Effective margin

net profit / selling price

Break-even price

covers COGS + fees, zero profit

Markup %

profit / COGS

Equivalent margin %

profit / selling price

Channel Comparison (same selling price)

Channel	Fee	Net after fees	Tax	You keep

Disclaimer: Tax calculations are estimates. Combined tax rate should reflect your actual federal + state + self-employment obligations. Consult a qualified accountant for your specific situation. Fee rates are defaults based on published 2024 rates and may differ from your negotiated rates.

Product Pricing & Profit Calculator

Product Pricing & Profit Calculator

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