Pricing Strategy Calculator
Find a profitable selling price using the strategy that fits your situation. Pick a mode, enter your cost, and the tool shows selling price, profit, margin and markup in one view.
1. Choose a pricing strategy
2. Your inputs
Keystone (2×) is the classic retail rule of thumb. Use as a sanity check against your chosen strategy.
Your selling price
The four pricing formulas
| Mode | Formula |
|---|---|
| Cost-plus | Cost × (1 + markup%) |
| Target margin | Cost ÷ (1 − margin%) |
| Competitive | Competitor price × (1 + positioning%) |
| Psychological | Floor to nearest .99 (or .95) |
Formulas reviewed against Shopify and ecommerce pricing guidance, 2026.
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 50% markup gives a 33.3% margin, not 50%. The calculator shows both so you never confuse them.
When should I use target-margin pricing?
Use it when your business plan or a buyer sets a required profit margin. The calculator works backwards to give you the exact price that hits that margin.
How does competitive pricing work?
You anchor on a competitor's price and set yours relative to it. The calculator lets you price above or below the benchmark, then shows the resulting margin so you can see if the position is sustainable.
Is psychological pricing worth it?
Ending prices in .99 or .95 consistently improves conversion for consumer goods in many categories. The calculator rounds down from your target price so you keep a psychological edge while preserving margin.