The calculator gave me 105.71; should I round to 104.99 or 109.99?
Either works as long as you know what it does to your margin. The price 105.71 delivers exactly 25%; 104.99 takes it down to about 24.52%, and 109.99 lifts it to about 27.72%. Choose after you see both numbers, not before.
Where 105.71 came from
The product costs 62 with shipping of 12, percentage fees of 5% and a target margin of 25%. The Selling-price calculator returns an exact price that is not fit for a price tag: 105.71. The tool itself notes that the price is shown rounded to two decimals and that rounding it down lowers the real margin slightly.
Check the margin of each candidate
When the price moves, the percentage fee moves with it, so eyeballing the two prices is not enough. The method: work out the fee on each price (5% of it), add it to your costs of 74, then enter that total as the cost and the candidate as the selling price in the Profit margin calculator.
104.99: fee about 5.25, costs with fee 79.25, profit 25.74, margin about 24.52%.
109.99: fee about 5.50, costs with fee 79.50, profit 30.49, margin about 27.72%.
The exact 105.71: profit 26.43, margin exactly 25%.
How to choose
- If 25% is the minimum you accept, rounding to 104.99 breaks it. The gap is small on one order, but it repeats on every order.
- If 109.99 is acceptable in your market, it gives you room to absorb an estimating error or a small discount later.
- If competitors sell below 105, the question is no longer about rounding but about the costs or the margin itself. Solve again with a lower margin and see where the price lands.
Do not forget the floor
Before any rounding, know this product's break-even price: set the margin to zero with the same inputs and it comes out at 77.89. Rounding will never take you there, of course, but knowing the floor helps when you later consider a promotion or coupon on this item. If you decide on .99 endings across the store, do the same check for each product, because the effect of rounding depends on the price: a difference of about one unit on a product priced at 20 matters far more than on one priced at 200.
Common questions
Is one price ending better than another?
The tool does not judge how price endings affect sales. It shows you the margin at each price, and the choice is yours.
Should I enter the rounded price in the selling-price calculator?
The selling-price calculator solves the price from a margin. To check the margin of a given price, use the profit margin calculator.
