Pricing Calculator
Find the optimal selling price for your product using five proven pricing strategies. Compare cost-plus, competitive, value-based, and psychological pricing in one tool.
Total unit cost (COGS + shipping)
Operational costs per unit
Desired gross margin %
Minimum acceptable margin
Average market / competitor price
−2 = elastic, −0.5 = inelastic
Pricing Analysis
All 6 Strategies
Price Strategy Chart
Price-Margin Scenarios
Pricing Strategies Explained
Setting the right price is one of the most critical decisions for any ecommerce business. Price too high and customers leave. Price too low and you erode margins. The best approach is to use multiple pricing strategies and find where they converge.
Cost-Plus Pricing
The simplest strategy — add a fixed markup to your total cost. Guarantees profitability but ignores what the market is willing to pay.
Markup vs. Margin — Know the Difference
| Markup | Gross Margin | Example (Cost $10) |
|---|---|---|
| 25% | 20% | $12.50 |
| 50% | 33.3% | $15.00 |
| 100% | 50% | $20.00 |
| 200% | 66.7% | $30.00 |
Competitive Pricing
Anchor your price relative to competitors. If you can't compete on price alone, differentiate on value, packaging, or service — then price accordingly.
How to Find Your Optimal Price
- Start with cost-plus: Calculate the minimum viable price that covers all costs.
- Check the competition: Enter competitor prices to see where you stand in the market.
- Apply demand elasticity: High elasticity (−2.0) means customers are price-sensitive; low elasticity (−0.5) means they'll pay a premium.
- Use psychological pricing: The calculator automatically suggests the nearest .99 price point.
- Pick the recommended price: The tool balances all strategies to suggest an optimized price that maximizes revenue while remaining competitive.
Frequently Asked Questions
What is cost-plus pricing?
Cost-plus pricing adds a fixed markup to total product costs. If a product costs $10 and you want a 50% markup, the selling price is $15. It guarantees coverage of costs but ignores market demand and competitor prices.
What is value-based pricing?
Value-based pricing sets prices based on the perceived value to the customer rather than cost. If customers believe a product is worth $100, you charge $100 regardless of what it cost to make.
What is psychological pricing?
Psychological pricing uses price points like $19.99 instead of $20. Research shows .99 prices feel significantly cheaper even though the difference is just $0.01.
How do I calculate a good markup?
Markup = (Selling Price − Cost) / Cost × 100. A 100% markup means selling at twice the cost, giving a 50% gross margin. Most ecommerce targets 40%–100% markup.
What is the difference between markup and margin?
Markup is on cost: (Price − Cost) / Cost × 100. Margin is on price: (Price − Cost) / Price × 100. A 100% markup equals a 50% margin. Always clarify which metric is being discussed.
What is keystone pricing?
Keystone pricing is a traditional retail rule where you price a product at exactly 2× its total cost (100% markup = 50% gross margin). It originated in brick-and-mortar retail as a simple rule of thumb that covers overhead and leaves room for discounts. It appears as one of the six strategies in the comparison chart.
What are the 6 pricing strategies shown?
The calculator compares: (1) Cost-Plus — total cost × markup, (2) Target Margin — cost ÷ (1 − target margin%), (3) Competitive — 5% below the competitor price you enter, (4) Psychological — nearest .99 price, (5) Recommended — weighted blend of cost-plus and competitive, (6) Keystone — 2× total cost. The recommended price balances profitability and market positioning.