Pricing and Margin Calculator in Excel: The Profitable Selling Price for Every Product

Many sellers price by adding a fixed percentage to cost or by copying a competitor, then discover the real profit is far lower because they forgot platform commission, payment fees and shipping. A discount that looks small can require doubling sales to make up for it.

This sheet calculates the real profit of each product after all variable costs, suggests the price that meets your target margin, shows in numbers the effect of each discount on required volume, then totals the products to give your monthly profit and break-even point.

Who is it for?

• Online and retail store owners
• Craftspeople and service providers
• Sellers on commission-based platforms
• Anyone who wants discount decisions based on numbers

What is inside the sheet?

• A product table with cost, packaging, shipping and commission
• Price before and after VAT, unit profit and margin
• The suggested price for your target margin
• A discount table from 0 to 30% with the volume needed
• Total monthly profit, break-even and margin of safety
• A flag for products below the target margin

How to use it

1. Enter the VAT rate, target margin and fixed costs.
2. Add each product with cost, price and monthly volume.
3. Pick a product for the discount analysis.
4. Adjust the prices of the flagged products.

Formulas used

• Unit profit = price − variable cost − commission
• Margin = profit ÷ price
• Suggested price = cost ÷ (1 − commission − target margin)
• Volume needed = current profit ÷ profit after discount × current volume
• Break-even = fixed costs ÷ contribution margin

Worked example from the sheet itself

Wireless earbuds at 159 before VAT and a total cost of 82.54 give unit profit 76.46 and a 48% margin.

• A 10% discount cuts profit to 61.51, so you must sell 74.6 units instead of 60, a 24% increase.
• Monthly revenue is 50,105 and net after fixed costs is 16,888.70.
• Break-even is 10,541.66 and two products are below the target margin.

Margin is not markup

Adding 50% to cost gives a margin of only 33% of the price. The difference fools many people, so the sheet computes margin on the selling price, which is what competitors and platforms compare.

The effect of a discount

When you cut the price 10% you do not lose 10% of profit but far more, because cost stays fixed. If your margin is 48% it becomes 43% and you need roughly a quarter more volume to hold profit. The discount table shows exactly this.

Fixed costs and break-even

Rent and salaries do not change with units. Break-even is the revenue that covers them after contribution margin. Every riyal above it is profit, and the margin of safety shows how far sales can fall before a loss.

Tips for best results

• Review prices every quarter.
• Put free shipping inside cost, not outside.
• Never discount without calculating the volume needed.
• Raise the price of low-margin products first.

Frequently asked questions

Does it support other currencies?

Yes, numbers carry no fixed unit, so use your own currency.

How many products?

Eight products in this version and it can be extended.

Is VAT part of the margin?

No, margin uses the price before VAT because VAT is not your revenue.

Download the sheet

Press the download button at the top of the page to get the Excel file. It includes a full guide sheet, yellow input cells and formulas protected from accidental edits. The sheet is also available in Arabic from the language switcher.

An analysis tool, not financial advice; figures are illustrative.