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How Alverra 3X Monthly Revenue by Turning TrueProfit x ChatGPT Into Profit Advisor →
From $50K to $150K/Month: See How Alverra Shop Scaled with TrueProfit
From $50K to $150K/Month: See How Alverra Shop Scaled with TrueProfit
From $50K to $150K/Month: See How Alverra Shop Scaled with TrueProfit
From $50K to $150K/Month: See How Alverra Shop Scaled with TrueProfit
The calculated price tells you what your costs and profit target require. Next, check whether your product and offer can support that price.
Use your supplier's delivered cost rather than the product price alone. Include payment fees, marketing, returns, and overhead in the right fields. If your ads are still being tested, try a higher CPA as well as your current estimate to see how much your pricing depends on low acquisition costs.
Look at stores selling similar products, then compare quality, delivery, reviews, guarantees, and the total price customers pay. If similar offers sell for $50 but you need $65.24, review your sourcing, shipping, advertising costs, and positioning before cutting your margin. Faster delivery or a stronger product may support a higher price, but customers need a clear reason to pay it.
Check the price customers will pay after a discount. For example, 10% off $65.24 reduces the selling price to about $58.72, so you won't keep the same 20% net margin with unchanged costs. Set a higher target to build room for promotions, then check the discounted offer. Bundles may help spread acquisition and fixed payment costs across more items.
A lower price may bring more orders while leaving less profit per order. Test one pricing change at a time and compare conversion, acquisition cost, and total profit. If you're a dropshipper, read our guide on how to price dropshipping products for a fuller pricing process.
FREE TOOLSUse our free Ecommerce Selling Price Calculator to find a selling price that covers your costs and meets your target net margin or markup. See your estimated gross profit, net profit, and margins before listing a product.
Founder of TrueProfit
Our ecommerce selling price calculator works backward from your pricing target. Enter your costs, choose a net margin or markup, and see the price needed to reach it.
Step 1: Enter your COGS per item
Add the direct costs of supplying one item, including the product, packaging, supplier shipping, customs duties, and any direct fulfillment costs. If your supplier charges $20 for the product and $5 to ship it to your customer, enter $25. Shipping is already included in COGS, so don't add it again under other fees.
Step 2: Add your marketing cost per order
Enter your average cost per acquisition (CPA): the marketing or advertising cost to acquire one paying customer. For example, if you spend $200 to generate 10 orders, your CPA is $20. Use a realistic estimate for the product and channel you plan to sell through.
Step 3: Choose your Shopify plan and payment gateway
Select your plan and the gateway that will process the order. The calculator uses the processing percentage, fixed fee per order, and any applicable Shopify transaction fee. Each gateway shows its preset processing rate and fixed fee. If your agreement differs, choose Custom and enter your own rates.
Step 4: Include other fees
Add costs that aren't already in COGS, marketing, or payment fees. These may include expected return costs and a per-order share of your apps, Shopify subscription, and other overhead. For example, $100 in monthly overhead spread across 100 expected orders adds $1 per order.
Step 5: Choose net margin or markup
Choose how you want to set your price. Net margin is the percentage of revenue you want to keep after the costs you've included. A 20% net-margin target means keeping about $20 from every $100 of revenue. Markup is how much you add on top of COGS: a 100% markup doubles COGS, so $25 COGS becomes a $50 price. Gross margin is calculated for you; you don't enter it as a target.
Step 6: Check your tax settings
Enter your sales tax or VAT rate, if applicable. Leave “My prices include tax” off when tax is added at checkout. Turn it on when your displayed selling price already includes tax. Leave the rate at 0% when you don't charge sales tax or VAT. Customs duties and import fees belong in COGS. All profit results are before income tax.
Your results show:
When your prices include tax, you'll also see the amount of tax included. The results reflect the costs you enter, so include your relevant expenses for a useful net-profit estimate.
If you price by markup, check your net profit. Markup only covers COGS, so the calculator warns you when the price loses money after marketing, payment, and other fees.
For example
Suppose your product has these costs:
The calculator returns a selling price of $65.24. That leaves about $38.05 in gross profit and $13.05 in net profit per item, a 58.3% gross margin and a 20.0% net margin. Payment fees are about $2.19. These rates are used for this example; use your own rates when pricing a product.
Net margin target:
Selling price before tax = (COGS + Marketing + Other fees + Fixed payment fee) ÷
[1 − (Target net margin + Payment rate + Shopify transaction rate) × (1 + Tax rate)]
Markup target:
Selling price before tax = COGS × (1 + Markup)
If your prices include tax:
Displayed selling price = Selling price before tax × (1 + Tax rate)
Gross margin:
Gross margin (%) = (Revenue − COGS − Payment fees) ÷ Revenue × 100
Net margin:
Net margin (%) = Net profit ÷ Revenue × 100
where revenue includes any sales tax or VAT
With the same costs and 20% VAT included, the displayed price becomes $83.24. It includes about $13.87 of VAT, leaving about $16.65 in net profit: 20% of the full price. The VAT portion isn't revenue you keep.
A suitable net-margin target covers your costs and leaves enough profit to support the business. It depends on your product category, acquisition costs, returns, overhead, and how much customers will pay.
Gross and net margin measure different things. Gross margin shows what remains after COGS and payment fees. Net margin also accounts for marketing and other expenses. In this calculator, you can set a net-margin target or a markup and see the resulting gross and net margins. If you price by markup, use the net margin result to check that the markup covers your full costs.
Using the example costs above, with no sales tax or VAT:
These are pricing scenarios, not industry averages. With a $20 CPA, marketing takes a substantial share of each sale. Raising the net target requires a higher price if costs stay the same. Compare margins only when the underlying costs are counted consistently, especially supplier shipping in COGS.
Once the product is live, compare your estimates with the costs and profit of completed orders. Your supplier price, shipping charges, CPA, refunds, and payment fees may change as you sell.
Check whether each product is keeping the net margin you planned. If it falls short, identify the cost that changed before adjusting the price. Higher acquisition costs may call for a different campaign or offer; rising fulfillment costs may mean reviewing your supplier.
TrueProfit brings Shopify revenue and costs into one dashboard so you can track actual store profitability. Review COGS, shipping, ad spend, payment fees, refunds, and other expenses alongside net profit to see where results differ from your pricing assumptions.
Update the calculator with those actual costs before your next pricing test. This helps you set prices from what the product earns, rather than revenue alone.
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Yes. Enter the combined COGS for one complete bundle, including supplier shipping, and allocate marketing and other fees to that order. The payment percentage applies to the bundle's selling price, while the fixed processing fee is charged once per order. Read the output as the price of the complete bundle, not each item inside it.
It depends on your other costs. A price of 2 × COGS keeps 50% of the price after COGS; 3 × COGS keeps about 66.7%. After payment fees at the example rate, that is a 46.5% or 63.4% gross margin. Neither tells you how much remains after marketing, payment fees, and overhead.
With the example costs and no sales tax or VAT, a 2x price of $50 loses $1.75 per order, a −3.5% net margin. A 3x price of $75 leaves about $22.53, or roughly 30% net margin. Choose Markup in the calculator to test a 100% (2x) or 200% (3x) markup against your costs, or set a target net margin to find a price based on your full costs.
Your next wise move starts with seeing your True Net Profit now.
Set your price with a plan for profit, then track what each sale keeps with TrueProfit.
