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Starts from landed cost, not supplier cost: freight, duties, marketplace fees, and returns are priced in before the margin is believed.
Enter your numbers first, then use the niche guidance below to interpret the output against ecommerce sellers, makers, and wholesalers pricing physical products across channels with different fee structures..
Product pricing fails at the cost line more often than the price line. A $17.50 unit cost from the supplier becomes $24 landed once freight, duties, payment fees, packaging, and a realistic return rate are spread per unit, and a price that looked like a 60 percent margin is suddenly a 45 percent one. Pricing decisions made on supplier cost alone are made on fiction.
Build the true per-unit cost first using the checklist below, then enter monthly revenue and total direct costs at your candidate price to see real margins against industry benchmarks. The channel notes cover why the same product needs different prices on a marketplace, your own site, and wholesale.
Landed unit cost is supplier cost plus per-unit freight, duties, packaging, payment or marketplace fees, and an allowance for returns. At a candidate price, monthly revenue is price times expected units, and COGS is landed cost times the same units; the calculator returns gross and net margin, with operating expenses covering the costs that do not scale per unit.
A seller prices a kitchen product at $42. Supplier cost is $14, freight and duties add $3.50 per unit, packaging $1.20, payment processing $1.55, and a 6 percent return rate effectively adds $2.50. At 450 units a month, revenue is $18,900 against $10,240 in direct costs.
Gross margin is 45.8 percent, not the 66 percent the supplier-cost math implied. Whether $42 works now depends on operating costs, especially advertising: at a $9 blended acquisition cost per order, the remaining margin must still clear overhead, which is the real pricing constraint for DTC products.
Interpretation assumptions: Amounts and percentage assumptions here are illustrative planning inputs, not measured industry averages. Compare results with your own costs and records; any displayed threshold bands are illustrative and do not establish typical business performance.
Everything it takes to get a sellable unit to the customer: supplier cost, freight, duties, packaging, fees, and a returns allowance, expressed per unit.
Spread their cost per unit: refund losses, return shipping, and unsellable stock divided across all units sold. At meaningful return rates this is several percent of price.
The margins must work independently in each channel after that channel's fees. Whether the displayed price differs is then a strategy choice, made with honest numbers.
The underlying margin math on clean inputs.
Test whether the margin funds your acquisition channel.
The store-level view across your whole catalog.
Focuses on food cost, labor scheduling, delivery platform fees, waste, rent, and the difference between menu-level and month-level margin.
Connects margin to occupancy, average daily rate, OTA commission, housekeeping load, utilities, amenities, and event or food revenue mix.
This calculator is a planning aid, not pricing, accounting, or tax advice. Duties, fees, and return economics vary by product and channel; verify your specific cost stack.
Your results will appear here
Enter your financials and click Calculate to compare gross and net margin against illustrative planning thresholds. Thresholds are illustrative planning bands for scenario review, not observed industry averages or benchmarks from third-party reports.