Minimum selling price
With $6.50 in variable costs, a $0.30 fixed fee, a 3% payment fee and a 60% margin target, the floor is $18.38. A markup of 60% on cost would give a different answer.
BIG Seller toolboxDigital product pricing calculator
Work backwards from a target contribution margin. Enter your per-sale costs and payment fees to find a price floor for a digital product.
Quick start
How to use it
- Add the cost that each extra sale creates, such as a royalty or fulfilment expense.
- Enter your actual percentage fee, fixed fee and target margin.
- Use the calculated floor as one input alongside customer demand and product value.
Tool notes
Frequently asked questions
The minimum price is (variable cost + fixed payment fee) ÷ (1 − percentage fee − target margin). Percentages are shares of the selling price. The result is rounded up to the next cent so rounding does not put the margin below the target.
Is this a markup or a margin calculator?
Margin. It divides the contribution left after the listed costs and fees by the selling price.
Does the example payment fee come from Shopify?
No. The defaults illustrate the calculation. Enter the rates from your own payment provider and plan.
Are taxes and fixed creation costs included?
No. Enter amounts on a consistent tax basis. To find how many sales recover a fixed creation budget, use the break-even calculator.
