Target Profit Pricing & Discount Simulator
Find the selling price that hits your target margin, then test how far you can discount before you lose money.
How the Target Profit Pricing Calculator Works
Most sellers price by adding a markup to product cost, then hope the margin survives ads, shipping, and fees. This calculator works the other way around. You choose the net margin you want, and it solves for the price that delivers it after every cost.
Enter your product cost, shipping, ad cost per order, fixed fee, and percentage fee, then set your target net margin. The tool returns the recommended selling price and your break-even price. Enter a planned discount to see the sale price, the profit you would keep, the biggest discount you can offer before losing money, and how much extra volume you would need to match your original total profit.
Key Formulas Behind This Tool
- Fixed Costs per Order: Product Cost + Shipping + Ad Cost per Order + Fixed Fee
- Recommended Price: Fixed Costs / (1 - Fee % - Target Margin %)
- Break-Even Price: Fixed Costs / (1 - Fee %)
- Max Discount Before Loss: (1 - Break-Even Price / Recommended Price) x 100
- Profit After Discount: Sale Price x (1 - Fee %) - Fixed Costs
- Extra Sales Needed: (Profit at Target Price / Profit After Discount - 1) x 100
Frequently Asked Questions (FAQ)
How do I price a product for a target profit margin?
Add up all per-order costs (product, shipping, ads, fixed fees) and divide by one minus your percentage fees and your target margin. This calculator does that for you and shows the exact price needed.
Why does the tool say my target margin is not achievable?
Percentage fees and your target margin are both taken from the selling price. If they add up to 100% or more, no price can reach that margin. Lower the target margin or reduce the percentage fees.
What is the maximum discount before I lose money?
It is the percentage you can cut from the target price before the price falls to your break-even price, the point where profit is exactly zero after all costs and fees.
What does "Extra Sales Needed to Match Profit" mean?
A discount cuts your profit per unit, so you need to sell more units to earn the same total profit. This figure shows how much more volume the discount must generate to make it worthwhile.
Should I include ad cost in my price calculation?
If you rely on paid ads to get orders, yes. Including your cost per purchase gives a price that protects your net margin, not just your gross margin.