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Selling Price Calculator

Set selling prices with real cost data. Harvest tracks time and expenses per project, so you can calculate prices that protect your margins.

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What should you charge per hour?

Most freelancers and consultants dramatically undercharge. This calculator accounts for what most people miss: non-billable time, taxes, and overhead.

$
Accounting for vacation, holidays, sick days
60%
Most freelancers can bill 50-70% of their time. The rest goes to admin, marketing, proposals, and learning.
$
Software, insurance, equipment, accounting, taxes beyond income tax, etc.
Your break-even rate $0
Recommended rate (+20% buffer) $0
Billable hours per week 0h
Equivalent daily rate $0

Start tracking your billable hours

Walk through the entire flow below. Start a timer, check your reports, and create a real invoice — all in three clicks.

Go ahead — start tracking!

One click and you're timing. Try it right here: start a timer, add an entry, edit the details. This is exactly how it feels in Harvest.

  • One-click timer from browser, desktop & mobile
  • Works inside Jira, Asana, Trello, GitHub & 50+ tools
  • Duration or start/end — your call
  • Day, week & calendar views to stay on top of it all
  • Friendly reminders so no hour gets left behind
Acme Corp
Website Redesign
Homepage layout revisions
1:24:09
Content Strategy
Blog calendar planning
1:30:00
SEO Audit
Technical audit report
0:45:00
Brand Guidelines
Color system documentation
2:15:00
Logo Concepts
Initial sketches round 1
1:00:00
Today's total 6:54:09

Understanding the Core Components of Selling Price Calculation

Calculating the right selling price is crucial for maintaining profitability while staying competitive in your market. A selling price calculator helps you determine the optimal selling price by factoring in costs, desired profit margins, and applicable taxes. To start, you need to consider the cost of goods sold (COGS), which includes the raw materials and direct labor costs incurred in production.

Additionally, it’s important to account for shipping and transaction fees. For instance, many e-commerce platforms charge marketplace fees (Amazon, eBay, Etsy) and payment processing fees that typically range from 2.2% to 3% plus a fixed fee per transaction. By including these in your calculations, you can ensure that your final price covers all expenses.

Taxes are another critical component. In the EU, VAT rates vary significantly, from 17% in Luxembourg to 27% in Hungary. Meanwhile, in the US, sales tax rates can reach up to 9.565% in Louisiana. Understanding these variances ensures compliance and accurate pricing.

Markup vs. Profit Margin: Key Differences

Understanding the difference between markup and profit margin is essential for setting accurate selling prices. While both terms relate to profitability, they are calculated differently. Markup is the percentage added to the cost price of goods to achieve a selling price, calculated as profit divided by cost. In contrast, profit margin is the percentage of selling price that is profit, calculated as profit divided by revenue.

For example, if you buy a product for $50 and sell it for $100, your markup is 100% (i.e., $50 profit ÷ $50 cost), and your profit margin is 50% (i.e., $50 profit ÷ $100 revenue). Choosing the right approach depends on your business strategy and market competition. A selling price calculator can simplify this process, allowing you to input your desired markup or margin and quickly determine the appropriate selling price.

Incorporating Taxes and Compliance into Pricing

When calculating the selling price, it is crucial to incorporate taxes to remain compliant and avoid unexpected liabilities. For instance, businesses in the EU must account for varying VAT rates, which can significantly impact pricing. Similarly, in the US, sales tax not only varies by state but can also include local taxes, with combined rates reaching over 9% in some areas.

Compliance with invoicing and billing regulations is equally important. For example, German VAT law (UStG §14) requires specific invoice details, including tax rates and amounts. Tools like PEPPOL ensure that electronic invoices meet these standards, facilitating seamless international transactions. By using a selling price calculator that integrates these elements, businesses can ensure transparency and accuracy in their pricing.

Choosing the Right Selling Price Calculator

Selecting a selling price calculator that meets your business needs involves understanding your operational requirements and the costs involved. Key inputs should include item costs, shipping fees, overhead costs, and the desired profit margin. A well-designed calculator will also allow for adjustments based on different tax rates and transaction fees.

Look for calculators that offer flexibility in setting profit targets as either a dollar amount, margin percentage, or markup percentage. This adaptability can be crucial for businesses operating in diverse markets. In addition, ensure the calculator provides clarity on how taxes like VAT, GST, or sales tax affect your pricing strategy. By factoring these elements, you can confidently set a selling price that supports your financial goals.

Calculate Your Selling Price with Harvest

Harvest simplifies invoicing, though it doesn't calculate selling prices. Use external calculators to factor in costs and taxes for optimal pricing.

Screenshot of Harvest's invoicing tool with selling price context.

Selling Price Calculator FAQs

  • To calculate the selling price, you'll need the cost of goods sold (COGS), desired profit margin, shipping fees, and any applicable transaction fees. Additionally, taxes such as VAT or sales tax should be considered for compliance and accuracy.

  • Shipping and transaction fees should be included in your total cost calculations. For example, e-commerce platforms often charge 2.2% to 3% plus a fixed fee per transaction, which should be added to the cost to ensure your selling price covers all expenses.

  • Markup is the percentage added to the cost price to determine the selling price, while profit margin is the percentage of the selling price that is profit. For instance, a 100% markup on a $50 item results in a $100 selling price, with a 50% profit margin.

  • Taxes like VAT and sales tax significantly impact selling prices. For instance, VAT rates in the EU vary from 17% to 27%, and US sales tax can reach over 9% in some states. Including these taxes in your calculations ensures compliance and accurate pricing.

  • While Harvest excels in invoicing, it does not provide selling price calculators. Look for online tools that allow input of costs, desired margins, and taxes to determine the optimal selling price for your products.

  • To ensure compliance with VAT and sales tax, integrate current tax rates into your selling price calculations. Tools like PEPPOL can help generate compliant invoices by aligning with international standards, such as the European EN 16931.

  • Marketplace fees for platforms like Amazon, eBay, and Etsy typically range from 2.2% to 3% plus a fixed fee per transaction. These fees should be factored into your selling price to maintain profitability.