Skip to content
SLC

Shipping Price Calculator

Find the item price that keeps the whole order profitable at any shipping charge — whether you charge separately or offer free shipping.

Enter every amount in the same currency. This selector only changes the symbol shown — it does not convert exchange rates.

Order

Enter 0 for free shipping.

Order revenue

$30.00

Actual ship + packaging

$7.70

Shipping over/under

−$2.70

Fees

$3.30

Net profit

$11.00

Price needed for target profit

$18.33

For $5.00 profit at this shipping

Shipping under-recovers by $2.70 per order. Item margin has to cover it.

All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.

Free worksheet for your next step

Turn this calculator result into a plan with a matching worksheet, checklist, or printable resource.

  • WorkbookGeneral

    Seller Profit Workbook

    Track revenue, expenses, fees, profit margins, break-even points, and product performance across any online selling business.

    Open the worksheet →
  • PlannerBusiness Planning

    Small Business Budget Planner

    Plan monthly income, fixed costs, variable expenses, and savings targets for a small online business in one simple budget workbook.

    Open the planner →

How to use this calculator

  1. Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
  2. Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
  3. Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.

When to use this calculator

  • You're deciding between charging shipping separately and offering free shipping.
  • Postage or packaging prices went up and you need to know the new item price.
  • Your orders look profitable per item but the month doesn't add up.
  • You're listing a heavy or bulky product for the first time.

Formula

Order revenue = Item price + Shipping charged · Fee = Order revenue × Fee% + Fixed · Profit = Order revenue − Item cost − Ship actual − Packaging − Fee · Item price for target = (Target + Costs + Fixed − Ship charged × (1 − Fee%)) ÷ (1 − Fee%)

Worked example

$25 item, $8 cost, $5 charged, $6.50 postage, $1.20 packaging, 10% + $0.30, target $5.

  1. Order rev = $30
  2. Fee = $3.30
  3. Profit = 30 − 8 − 6.50 − 1.20 − 3.30 = $11.00

Answer: $11 profit — well above $5 target

How it works

Under-charging shipping isn't automatically bad — the item price can absorb it as long as total order profit is positive. This calculator finds the tipping point.

Expert tips

  • Enter your real postage, not the label price you hope to pay — dimensional weight and surcharges are where shipping quietly loses money.
  • Add packaging separately: boxes, mailers, tape, and inserts routinely add $0.50–$2 per order.
  • Most platforms charge their percentage fee on the shipping you collect too, so free shipping raises the fee on the item price instead.
  • To model free shipping, set shipping charged to zero and read the item price the calculator needs for your target profit.

How to interpret your results

  • Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
  • Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
  • A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
  • Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.

Common mistakes

  • Setting shipping to cover postage exactly, forgetting packaging.
  • Ignoring the fee % on the shipping charge — most platforms apply it.
  • Free shipping without raising the item price.

Related Guides

Go deeper with plain-English guides on the same topic.

FAQ

Should I offer free shipping?
If it raises conversion enough to cover the added cost, yes. Model it here with shipping charged = 0.
How do I set the item price for free shipping?
Set shipping charged to zero and enter your target profit. The item price the calculator returns already absorbs postage, packaging, and fees.
Do platforms charge fees on shipping?
Usually yes — the percentage fee is typically applied to the whole order total including shipping. Check your platform's current fee schedule.
Why is my shipping losing money when the charge covers postage?
Because postage isn't the only cost. Packaging, handling time, and the fee charged on the shipping amount all come out of the same charge.
How is this different from Shipping Cost Difference?
That tool isolates the shipping line; this one prices the item so the whole order is profitable.

Why trust this calculator?

This tool uses standard mathematical formulas and commonly accepted calculation methods, shown openly in the Formula section above so you can verify the math yourself. Results are estimates based on the information you enter and do not account for every individual circumstance. For important financial, tax, legal, medical, or business decisions, please double-check with a qualified professional before acting on the numbers.

What to calculate next

Once the item price supports your shipping, check whether the shipping line itself breaks even, model a free-shipping version of the same order, and confirm the price still works across your whole product pricing.

Related calculators

You may also find these tools helpful.

Related Guides

Related Calculators

Troubleshooting

Recommended Downloads

Continue Learning