Product Pricing Calculator for Dropshipping

Last updated: February 18, 2026

This product pricing calculator helps you estimate what you should charge to hit a target net margin. Enter product costs, shipping, fees, and optional ad cost per order to calculate a more realistic selling price. You can also include VAT to get a customer-facing VAT-inclusive price for European markets.

Calculator

How to Use This Tool

  1. Enter your known variable costs per order.
  2. Set transaction fee percentage and desired net margin.
  3. Add expected ad cost if paid traffic drives sales.
  4. Enable VAT only if you need VAT-inclusive output pricing.
  5. Use the suggested price as a baseline and test against market demand.

Understanding Product Pricing

Pricing should cover all variable costs and still leave enough margin for growth, refunds, and volatility. If you ignore fees or ad spend, your displayed profit can look healthy while real margins stay weak. This calculator connects margin goals directly to a target selling price.

Use the output as a decision baseline, then combine it with conversion rate, market positioning, and competitor context. A mathematically correct price still needs to fit perceived product value.

FAQ

Does this calculator include payment fees automatically?

Yes, based on the platform and transaction fee percentage you enter.

Why is my suggested price very high?

This usually means costs or margin targets are high relative to product economics.

Can I set target margin to 0%?

Yes. That gives a break-even oriented selling price estimate.

What if no feasible price is returned?

Your fee percentage plus target margin leaves insufficient room to cover costs. Lower one of those inputs.

Should VAT be included in displayed price?

If your storefront shows tax-inclusive prices, enable VAT to get a realistic customer-facing number.