Retail pricing
A planned ticket price can look profitable until discounts, marketplace fees, payment processing, fulfillment and returns are included. Use this calculator after estimating landed cost to test the price customers are expected to pay and the contribution left before fixed overhead.
Direct answer
To calculate retail contribution margin, start with expected selling price after discounts. Subtract landed cost per sellable unit, fulfillment, channel and payment fees, and a documented returns or loss allowance. Divide the remaining contribution by expected selling price. Margin and markup are different: margin uses selling price as the denominator; markup uses cost.
Free retailer planning tool
Values stay in your browser. Results show contribution before fixed overhead, tax and financing costs; they do not recommend a market price.
Pricing scenario
Contribution margin uses expected selling price after discount and subtracts landed cost, fulfillment, channel fees, payment fees and a returns allowance. Add fixed overhead, tax and financing separately.
Use this before requesting a quotation
Use the cost per expected sellable unit from a complete landed-cost estimate, not the supplier's unit price. Freight, duty, brokerage, inspection, packaging and expected unsellable units can materially change the amount inventory must recover.
The ticket price is what the business plans to display. The expected selling price reflects ordinary discounting. Model both. A product that works only when every unit sells at full price needs a separate markdown and clearance scenario.
Gross or contribution margin divides profit by selling price. Markup divides the difference between selling price and cost by cost. The percentages are not interchangeable. Record which formula a buyer, supplier or marketplace uses before comparing targets.
Marketplace commissions, payment processing and a returns or loss allowance usually move with selling price. Enter each rate separately. Check whether a provider applies the fee before or after tax, shipping, refunds or other adjustments; the calculator uses a simplified selling-price base.
Add pick-and-pack, local fulfillment, retail packaging or other variable costs that exist for each sale. Keep rent, salaries, software and broad marketing outside this unit view unless the business has a documented allocation method.
The maximum landed-cost result shows what can remain for the product after the target contribution margin and entered variable deductions. It is a negotiation and assortment screen, not a promise that the target price or sales volume is achievable.
Use at least three scenarios: normal selling price, a realistic promotion and a slower clearance case. Change returns, fees and fulfillment when the channel changes. Compare contribution per unit and total exposure for the planned quantity.
After sales begin, replace assumptions with actual selling price, refunds, fees, fulfillment and sellable-unit data. Preserve the estimate beside the result. The variance improves future buy-cost limits, pricing and reorder decisions.
Reusable buyer brief
Product reference and pricing date: Currency and exchange-rate source: Landed cost per sellable unit: Planned ticket price: Expected selling discount: Channel and payment fees: Fulfillment cost per unit: Returns and loss allowance: Expected contribution per unit and margin: Maximum landed cost at target margin: Base, promotion and clearance scenarios: Actual result and variance after review:
Fill only the details relevant to your request
Before you send the request
Margin divides profit by selling price. Markup divides the increase above cost by cost. For the same cost and price, the percentages differ, so label the formula whenever a target is discussed.
Use landed cost per expected sellable unit, not unit price alone. Then include variable selling and fulfillment deductions. Supplier price is only one input in the retail economics.
No. This page subtracts entered variable costs but not fixed overhead, financing, income tax or every business expense. Use the full accounts to evaluate net profit.
No. It shows the economics of entered scenarios. Customer demand, competition, positioning, legal restrictions and channel rules require separate research and judgment.
Keep the request specific
A mathematically viable price can still be wrong for the market. Review comparable customer choices, product differentiation, channel restrictions, taxes and the cost of holding or clearing inventory. This tool is operational planning, not accounting, tax, legal or pricing advice.
Send this checklist on WhatsAppEditorial method
The tool separates ticket price, expected selling price, landed cost, percentage deductions and per-unit fulfillment. Formulas are visible in the outputs and default numbers are examples only. It deliberately reports contribution before fixed overhead and avoids universal margin benchmarks because channel, category and business costs differ.
Ready with the key details
Send the product reference, estimated quantity and destination so the conversation starts with useful context.
Continue on WhatsApp