Product pricing and profit margin calculator for Kenya

Profit margin is profit as a percentage of the selling price. Markup is profit as a percentage of cost. They describe the same profit from different starting points, so a 30% margin is not the same as a 30% markup.

Include any cost you absorb for each sale: packaging, delivery, transaction fees, sales commission, and a reasonable allowance for product loss. If the customer pays delivery separately, leave that delivery cost out of the product price calculation.

No. VAT collected from a customer is separate from your selling price and is not profit. This calculator can display VAT on top of your price while keeping it out of the profit calculation.

It is designed for per-item pricing. For a complete business view, divide regular costs such as rent, staff, marketing, and utilities across the realistic number of sales you expect, then add that amount under Other cost per sale.

Switch to the "Check my current price" mode and enter what one sale costs you plus the price you charge before VAT. The calculator subtracts your total cost and the payment fee from that price and shows the profit, margin, and markup left. If the result is negative, the price does not cover your costs and needs to rise.

The calculator divides your profit target by your profit per sale to give the sales needed. With KSh 400 profit per sale, you need 25 sales for KSh 10,000 of profit and 125 sales for KSh 50,000. The estimate counts only per-sale profit, so add a share of fixed costs such as rent before treating it as your real monthly target.

The calculator includes a wholesale discount field. It applies the discount to your price before VAT and shows the wholesale price plus the profit that price leaves after your cost and payment fee. A 10% discount off KSh 1,500 gives KSh 1,350, and you can see immediately whether that tier still clears your costs.

Enter the competitor price and the calculator compares it with your final customer price, showing the exact difference in shillings. Use the gap to decide your next move: trim your costs, adjust the margin, or hold your price and sell on service and quality instead of cutting price and shrinking your margin.

Because the margin comes out of the final selling price rather than being added to your cost, and the payment fee is paid from the same sale. To keep 30% of the sale price after a 0.5% fee, the price must be total cost divided by one minus the margin and fee together, which is higher than cost plus 30%.