Shopify Pricing Calculator: Price for a Target Margin, with VAT

Pricing for the margin you want to keep

Many stores price by multiplying cost: two times, two and a half times, three times. A multiple ignores the costs that come with every sale, so the margin it leaves changes from product to product and often ends up far below what was intended. This calculator works the other way round. You say what a unit costs and what margin you want to keep after every cost and fee, and it gives the price that reaches it.

How it is calculated

The costs that do not depend on the price are added together: the unit cost, shipping and fulfilment, the payment processor's fixed fee and the ad cost per order. The costs that are a share of the price, the payment fee percentage and the margin you want, are taken off the price itself. So:

Price = (unit cost + shipping + fixed fee + ad cost) / (1 - fee % - target margin %)

With a unit cost of 18, shipping of 6, a fixed fee of 0.30, an ad cost of 10, a 3% payment fee and a 25% target margin, the costs that do not move with price add up to 34.30, and the price that keeps 25% after all of it is 34.30 / 0.72 = 47.64. The calculator also shows the profit per unit at that price, the markup on unit cost, and the prices for 20%, 30%, 40%, 50% and 60% margins, so you can see what each step of margin costs in price.

How to fill it in

Use it as an ecommerce pricing calculator for any channel, or as a Shopify pricing calculator with your Shopify payment fees.

• Unit cost: landed cost of one unit, including inbound freight and duties.
• Shipping and fulfilment: what you pay per order after any shipping the customer pays.
• Payment fee: the processor's percentage and fixed fee per transaction.
• Ad cost per order: optional, if you advertise this product.
• Target margin: the share of the price you want left after all of the above.

The fee percentage and the target margin together must stay under 100%, because no price can leave more than the whole sale.

What the calculator cannot tell you

It finds the price that reaches a margin; it does not know whether customers will pay it. Check the result against competitors' prices (the Competitor Store Analyzer shows observed public prices), the value your product offers and how price changes affect conversion. It does not include discounts, refunds or fixed business costs, so leave room for them in the target margin. Everything runs in your browser; nothing is sent or stored.

Know which prices work

Once a product is on sale, ORVX shows its realized margin per order with real costs, discounts and refunds, so you can see which prices are working and which products only look profitable at list price.

Worked examples

Illustrative figures, not benchmarks.

Pricing with ads included

A product costing 18, with 6 shipping, 2.9% + 0.3 card fees, 10 of ads per order and a 25% target margin needs a price of 47.57, which leaves 11.89 per unit.

The same product with 20% VAT

With 20% VAT, the net price is 47.96 and the price to show is 57.55. The net price rises slightly because the card fee is charged on the tax too.

Organic sales, higher margin

With no ad cost and a 40% target, the same product needs 42.56 and leaves 17.02.

How VAT and GST change the answer

Same product everywhere: cost 30, shipping 8, card fee 2.9%, target margin 30%. The result is the price to show with tax included.

Rates as checked on 26 October 2026. Check the official page before you rely on one.

Common mistakes

• Adding a percentage on top of cost and calling it margin: a 25% markup is a 20% margin.
• Setting the price before ad cost per order is known.
• Quoting a price without tax where customers expect it included.
• Copying a competitor's price without knowing their cost.

Questions

Why not just double the cost?

Doubling gives a 50% gross margin before shipping, fees and ads. The calculator starts from what you want left at the end.

Should the price be the final one?

It is the floor for your target. Round it and test it against what the market will pay.