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Minimum Advertised Price Calculator

Find the lowest price you can advertise and still hit margin.

Result

$50.00
$10.00
$40.00

How it is calculated

The tool adds your minimum percentage on top of your product cost: floor price = cost × (1 + percent ÷ 100), and the extra amount is floor price − cost, in dollars. Note that the percentage is applied to cost, so it is a markup, not a margin on the selling price. A 25% entry gives a price that is 25% above cost, which equals a 20% margin on that price (markup ÷ (1 + markup)). To get a given margin m on the price, enter m ÷ (100 − m) × 100. The tool has no field for the manufacturer's MAP, so it does not compare against it. It gives the lowest price at which you reach your own target, and you check that against the MAP policy yourself. Both fields must be filled in; 0% simply returns the cost. A negative cost or a negative percentage shows no result.

Worked example

A product costs you 40 and you want at least 25% on top. Step 1: multiply cost by 1.25: 40 × 1.25 = $50.00, the floor price. Step 2: the amount added is 50 − 40 = $10.00. As a share of the $50.00 selling price that is 10 ÷ 50 = 20%, not 25%. If the manufacturer's MAP for this item is $45.00 your own floor is higher, so you would have to advertise at $50.00 or more to hit your target.

Try this example →

Common mistakes

  • Typing the margin you want on the selling price. The tool treats the percentage as markup on cost, so a 25% entry gives a 20% margin. For a 25% margin on price, enter 33.33 (a $40 cost then gives $53.33).
  • Entering cost without freight, fees or duties. The floor is calculated only from the cost you type, so include landed cost.
  • Expecting the tool to check the manufacturer's MAP. It only computes your own cost-plus floor; compare with the MAP policy separately.
  • Typing the percentage as a decimal (0.25). The result would be a floor only 0.25% above cost.
  • Forgetting that marketplace fees, payment fees and returns come out of the selling price, so a floor that covers cost plus markup may still leave less profit than expected.

About this calculator

A minimum advertised price (MAP) is the lowest price a manufacturer allows retailers to publicly advertise a product at — distinct from MSRP (the suggested retail price) and distinct from the actual selling price, since a retailer can still sell below MAP in-store or through private offers, just not advertise it. Manufacturers set MAP policies to protect brand value and to stop retailers from racing each other to the bottom in public listings.

From a retailer's side, MAP also needs to leave room for an acceptable profit margin above product cost. This calculator takes your product cost and a minimum markup on cost (a 25% markup on a $100 cost gives $125, which is a 20% margin on the price) and computes the lowest price that still earns that markup, along with the profit amount. It does not know the manufacturer's MAP, so compare the result with it yourself and advertise at whichever is higher.

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