Product Pricing Calculator: Set a Price That Protects Your Margin

Enter your costs, the marketplace fee percentage, the profit margin you want and the GST rate. The calculator works backwards to the selling price, and shows the MRP you can print if you plan to show a discount.

FreeNo sign-upRuns in your browserUpdated 2 Nov 2026
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Used to work out the MRP.
Your resultLive

Estimates only. Check important results before you rely on them.

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How to use this calculator

  1. Enter product cost, packaging, shipping and other costs.
  2. Enter the marketplace fee percentage.
  3. Enter the profit margin you want on the price.
  4. Add the GST rate and any discount to display.

The formula

Price before GST = Total costs ÷ (1 − Fee% − Margin%). Selling price = Price before GST × (1 + GST%). MRP = Selling price ÷ (1 − Discount%). Margin here means profit as a percentage of the selling price.

Worked example

Costs are ₹300 + ₹20 + ₹60 + ₹10 = ₹390. With 15% fees and a 20% margin, the price before GST is 390 ÷ 0.65 = ₹600. Adding 12% GST gives a selling price of ₹672. Profit is ₹120 and fees are ₹90. For a 30% off display the MRP is ₹960.

Understanding your result

Margin on price is lower than markup on cost: here a 20% margin is a 30.8% return on cost. The chart splits the price into costs, fees, profit and GST.

When to use it

  • Price new products with a target margin.
  • Check if a competitor's price leaves you a profit.
  • Set the MRP for discount promotions.

Assumptions and limits

Assumes fees are a percentage of the price before GST and that GST is charged on top. Fixed fees can be added to other costs. Marketplace fees, GST rules and tax rates change and differ by category. The values pre-filled here are samples only. Replace them with the figures from your own rate card and settlement report.

Frequently asked questions

How do I price a product for a target margin?

Add all your costs, divide by one minus the fee percentage and the margin percentage, then add GST.

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is profit as a share of cost.

Should the marketplace fee be included?

Yes. It reduces your profit on every sale.

What is the MRP for?

It is the printed maximum price. A discount from MRP gives the selling price.

Can I use it for offline sales?

Yes. Set the marketplace fee to zero.