Australian ecommerce and retail pricing tool
True Product Pricing Calculator Australia
Calculate a GST-aware selling price after product cost, fulfilment, advertising, payment fees, returns and target profit.
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How the calculator solves the price
A simple markup starts with cost and multiplies it. This tool works backwards from the selected profit margin. It separates customer price from ex-GST revenue, subtracts percentage-based selling costs and returns allowance, then checks whether enough revenue remains to cover the fixed cost per sale and target profit.
The break-even price uses the same costs with the profit target removed. That makes it clear how much discounting room exists before the sale stops contributing profit.
How to use the pricing result
Use an average advertising cost per completed sale, not cost per click. Include packaging, pick-and-pack, outbound shipping paid by the business and a realistic returns or discount allowance. When returns are expensive, the allowance should reflect lost shipping, processing, markdowns and unrecoverable stock—not only the refund.
Run the model again at promotional prices. A full-price margin can look healthy while a common 20% discount pushes the order close to break-even.
Important pricing limitations
The calculator works at the order or unit level. It does not allocate annual fixed overhead such as rent, salaries, software subscriptions and professional fees unless those costs are converted into an amount per sale. It also does not model input-tax credits, inventory write-offs, refunds of transaction fees, multi-item orders or different tax treatments.
Target profit margin is calculated against ex-GST revenue because GST collected is not treated as business revenue in this model.
Official sources and assumptions
Frequently asked questions
Why is the result higher than cost plus markup?
Because the formula accounts for GST, percentage fees, returns or discounts, advertising, fulfilment and the target profit margin at the same time.
What should I enter for advertising cost?
Use total advertising spend divided by attributable completed sales over a representative period, not a best-day figure.
Does the result include GST?
Yes when the GST option is selected. The customer price includes GST and the result shows the GST component separately.
Can I use it for services?
It is designed for product and order-level pricing. The sole-trader hourly rate calculator is a better starting point for services.