Product Pricing Calculator
Product cost, packaging, shipping, payment-gateway fee and the margin you want → the price to list, with a separate cash-on-delivery price so COD orders earn the same.
Inputs
What one unit costs you to buy or make.
Typical gateway fee; check your gateway. Set 0 if the buyer pays the fee or you price it separately.
Editable example. Used only for the COD line.
Result
List price (prepaid)
₹558.82
₹167.65 profit per order at 30% margin
Cash on delivery
Price = all-in cost ÷ (1 − gateway% − margin%). Margin here is on the selling price, not on cost — see the margin calculator for the difference.
What this product pricing calculator does
Most pricing mistakes come from treating percentage costs as if they were fixed. This calculator separates the two. Fixed costs — product, packaging and the shipping you absorb — are added up. Percentage costs — the payment gateway’s fee and the margin you want to keep — are taken off the selling price. It then solves for the one price where, after the gateway takes its share and all costs are covered, exactly your target margin remains. A second line does the same for cash on delivery, where there is no gateway percentage but a flat COD fee.
All-in cost F = product + packaging + shipping
Prepaid price = F ÷ (1 − gateway% − margin%)
COD price = (F + COD fee) ÷ (1 − margin%)How to use it
Enter fixed costs
Product cost per unit, packaging per order, and the shipping you pay that the customer does not.
Set the gateway fee
Default 2% is a typical gateway fee and is editable; check your gateway. Set 0 if you only take COD or UPI direct.
Set the margin you want
As a share of the selling price. If you run ads, the margin must also cover the ad cost per order — the ROAS calculator tells you how much.
Read both prices
The prepaid list price and a COD price that earns the same. The gap is a fair COD charge to add at checkout.
Worked example
Worked example
A scrunchie set costs ₹300 to make, ₹20 to pack, and the seller offers free shipping that costs them ₹60. Gateway fee 2%, target margin 30%, courier COD fee ₹40.
All-in cost F = 300 + 20 + 60 = ₹380.
Prepaid price = 380 ÷ (1 − 0.02 − 0.30) = 380 ÷ 0.68 = ₹558.82. Check: gateway takes ₹11.18, leaving ₹547.64; minus ₹380 cost = ₹167.65 profit = 30% of ₹558.82. Charm price ₹559.
COD price = (380 + 40) ÷ 0.70 = ₹600. Profit 600 − 420 = ₹180 = 30%. So a ₹41 COD charge on top of ₹559 keeps both orders equally profitable.
Had the seller priced at all-in cost × 1.3 = ₹494, the real margin after the gateway fee would have been 21.1%, and a COD order would have earned just ₹74 (15%).
Costs sellers forget
- ✓Returns and RTO: if 1 in 10 COD orders comes back and each costs you ₹120, that is ₹12 per order on average. Use the COD vs prepaid calculator to size it, then add it to 'shipping you pay'.
- ✓Free gifts, thank-you cards, tissue paper — packaging, not marketing.
- ✓Payment gateway GST: some gateways add 18% GST on their fee, so a 2% fee is effectively 2.36%.
- ✓Ad cost per order: with ₹10,000 spend producing 12 orders, that is ₹833 per order before any margin.
- ✓Your time. Even ₹50 per order for packing and replying changes the maths on low-ticket items.
After the price: list it where you keep it
A marketplace taking 10–20% on top changes this entire calculation; put that percentage in the gateway-fee box and watch the price jump. Selling from your own store avoids it. On SitesPlaced the free plan charges 0% commission, includes Razorpay and COD with an optional COD charge, and the paid plan adds AI copy and analytics — details on the pricing page. Use the margin calculator to double-check any price you already have.
Frequently asked questions
Why divide by (1 − fee − margin) instead of adding a percentage to cost?
Because the gateway fee and your margin are both percentages of the selling price, which you do not know yet. If you add 30% to cost you get a 30% markup, and after the gateway takes 2% of the price your real margin is closer to 21%. Solving price = cost ÷ (1 − fee − margin) makes the margin come out exactly as typed.
What should I put for the gateway fee?
Whatever your gateway actually charges on the payment methods your customers use — the default 2% is only a typical figure and is user-editable. Check your gateway's pricing page or your last settlement statement, and include GST on the fee if your gateway adds it.
Should shipping be in the cost if the customer pays for shipping?
Only the part you absorb. If you charge ₹60 shipping and the courier bills you ₹60, set shipping to 0 here. If you offer 'free shipping' and the courier bills you ₹60, that ₹60 is a cost and belongs in the box.
How does the COD line work?
COD orders skip the online gateway fee but the courier charges a flat COD handling fee. The calculator solves a second price with no gateway percentage and that fee added to cost, so a COD order earns the same margin as a prepaid one. The difference between the two prices is the COD charge you could add at checkout.
Does this include GST?
No — price your base first here, then add GST with the GST calculator so the tax sits on top of your margin rather than inside it. If your gateway fee is charged on the GST-inclusive amount, add a little buffer to the fee percentage.
Put this to work on a free online store
Set the price, then sell without a cut. A free SitesPlaced store charges 0% commission and lets you add a COD charge at checkout in one setting, so the COD price from this calculator is one toggle away.
Open your free store →₹0 to publish, unlimited products, 0% commission. Razorpay, COD, WhatsApp checkout, Shiprocket and Shipmozo included free. ₹499/month (early-bird; ₹999 after the first 30 stores) adds a custom domain, branding removal, AI copy, analytics, Meta Pixel + CAPI and WhatsApp Business API alerts. See pricing.
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