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Competitor undercut calculator

Can you undercut the lowest rival and still make money?

Enter the lowest rival price, how far under it you want to go, your cost and the margin you refuse to drop below. The tool shows the price to list at, your profit at that price, and the floor you should not cross.

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Your numbers

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Most US categories are around 13.6%. Rates differ by category and store plan, so check eBay's fee page.

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eBay US charges $0.30 on orders of $10 or less and $0.40 above that. Check the current amount.

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Result

Rival, your price and your floor

Rival$31.99
Your price$31.67
Floor$25.40

Price to list at

$31.67

Profit at that price

$7.95

Lowest price that keeps your margin

$25.40

Verdict

You can undercut and keep your margin

These are planning aids built on the numbers you type in. They are estimates, not forecasts, and they know nothing about your supplier, carrier or marketplace beyond what you enter.

Using it

  1. 1

    Enter the rival price

    Use the lowest price among sellers of the same item with a similar delivery time.

  2. 2

    Choose the undercut

    Many sellers go 1% under. A bigger cut costs profit on every sale.

  3. 3

    Set your floor

    The lowest margin you accept. If the rival goes below it, the tool keeps you at the floor instead.

The arithmetic

formula

1target = rival price x (1 - undercut)

2floor = (source cost x (1 + tax) + fixed fee) / (1 - fee rate - lowest margin)

3list at the higher of the target and the floor

Sample run: A rival at $31.99, a 1% undercut, a $17.89 source and a 10% minimum margin: list at $31.67 for about $7.95 profit. The floor is $25.40, so the rival would have to fall below that before you stop following.

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