Product economics

Price Change Calculator

See what a new price does to profit per unit, break-even ACoS and max CPC, and how far units can move before you're worse off.

Your product

Landed cost includes the product, shipping to Amazon and packaging. Edit the new price or the percentage change; the last field you edit sets the scenario.

New fees and optional context

Blank new-fee fields use today's fees. Conversion rate adds max CPC; cost per click adds break-even conversion rate; monthly units add dollar scenarios.

Today and the new price

Enter prices, referral fee, fulfillment fee and landed cost to compare scenarios.

How it works

  • Profit and ad limits

    Profit per unit before ads = price − (referral fee rate × price) − fulfillment fee − landed cost − other cost. Break-even ACoS = profit per unit ÷ price. Target ACoS = break-even ACoS − margin to keep, floored at zero.

    Max CPC = price × target ACoS × conversion rate, rounded down to the cent. Break-even conversion rate = cost per click ÷ profit per unit before ads. A break-even rate above 100% cannot be reached.

  • Volume break-even

    Required units at the new price = today's units × today's profit per unit ÷ new profit per unit. When profit per unit increases, units can fall by 1 − today's profit ÷ new profit. When it decreases, units must rise by today's profit ÷ new profit − 1.

    These figures hold ad spend constant. They do not model how much additional ad spend a different sales volume might need.

Worked example

Current price $29.99; new price $32.99; referral fee 15% at both prices; fulfillment fee $5.40; landed cost $7.00; margin to keep 10%; conversion rate 12%; cost per click $1.00; 600 units per month.

Worked example: unchanged conversion rate and units
MeasureTodayNew price
Profit per unit before ads$13.09$15.64
Break-even ACoS43.65%47.41%
Target ACoS33.65%37.41%
Max CPC$1.21$1.48
Break-even conversion rate7.64%6.39%
Monthly profit before ads$7,854.90$9,384.90

Units can fall 16.30%, from 600 to about 502, before profit before ads is lower than today. Cutting the price to $26.99 instead requires about 24.19% more units, about 745, to keep the same profit before ads.

Also a free JSON API: GET or POST https://profitfirstppc.com/api/price-change. Rates accept fractions or percents. See the API specification. Browser calculations do not call the API.

Limits

This is a scenario, not a forecast. It cannot predict how shoppers or Amazon's ranking respond to a new price. Referral and fulfillment fees may change at price thresholds; check the actual fees for your category and marketplace. Coupon fees, deal fees and storage are included only if entered. One product at a time.

Check all products with Catalog Profit Check, review an actual change with the ACoS Change Explainer, or read Playbook lesson 1.

Radu Bobirnac

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