Product price and profit margin calculator
The ArabyBot teamOfficial Meta partner · written from our own platform dataThe short answer
The commonest pricing mistake is working out profit from the purchase price alone. One order costs you the product, packaging, shipping, ads, a share of returns and collection fees. Enter your numbers here to see the full cost per delivered order, the price that gives the margin you want, and your real profit at the price you choose.
Suggested price
At the price you chose
—An estimate from your own numbers; suggested price = full cost ÷ (1 − margin).
How the numbers are worked out
- The returns allowance
Of every 100 orders shipped, your return rate come back, each costing what you entered. The total return cost is divided over the orders actually delivered.
- The full cost
The product, packaging, shipping, ads, collection fee and returns allowance together, per delivered order.
- The suggested price
The full cost divided by (1 − margin), not the cost plus the percentage; a 30% margin on the price is not 30% on top of cost.
Markup on cost or margin on price?
Markup on cost = profit ÷ cost, and margin on price = profit ÷ selling price. A product costing 100 and sold for 150 makes 50: that is 50% on cost and 33.3% on price. The calculator shows both at the price you choose.
The full explanation with an example: how to price products. To see what returns cost you a month: the returns calculator. Margin versus markup: profit margin.
See how the suggested price changes when you lower the return rate: confirming every order on WhatsApp before shipping catches the non-serious order and the incomplete address before you pay to ship it. WhatsApp order confirmation.
Try the agent before you pay anything
The agent that will answer your customers is the one answering you now: ask it from the chat button here or on WhatsApp. Your account is free with no credit card, and the free trial on your own number or page is activated after you contact our team on customer-service WhatsApp.