Minimum Profitable Price Calculator
Answers the question that actually matters before setting a price: what price do I need to sell this product at to earn what I want to earn, after VAT, fees, shipping, advertising and returns? Starts from the profit you want per sale and calculates the minimum price needed to get it.
How is it calculated?
This is the real product profit formula solved for price: minimum price = (target profit + fixed per-unit costs + advertising per sale + expected cost of returns) ÷ (1/(1+VAT/100) − total fees as a fraction). The denominator is the fraction of the price you actually keep after VAT and fees — if fees are high enough to equal or exceed that fraction, no price gives a positive profit with those costs, and the calculator tells you so instead of returning a meaningless number.
Examples
Cost 10, platform fee 15% + gateway 1.5%, target: 5 profit per sale
Minimum price: 32.73 (resulting margin 15.28%).
Cost 22, platform fee 12% + gateway 2%, target: 8 profit per sale
Minimum price: 63.54 (resulting margin 12.59%).
Why minimum price isn't just cost plus margin
VAT and fees are deducted from the sale price before you get to your margin, so raising the price doesn't increase profit in direct proportion. To see the profit at a specific price, use real product profit; to know how many units you need, sales needed.