Cost & Margin Pricing for WooCommerce

How the calculation chain works

3 Views Last updated: 2026-08-13

Fixed order, named steps

Every price is built from named components in a fixed order — never a free-form formula:

Real cost → FX buffer → landed costs → calculation cost → margin/markup → VAT → rounding

The steps

  • Real cost is the supplier's price converted to your store currency at today's rate. This — and only this — is written to the WooCommerce COGS field. Buffers and surcharges never end up in COGS, because then Woo's profit reports would lie.
  • FX buffer (a percentage per supplier) is applied to the exchange rate. 2% protection → the calculation uses the rate × 1.02.
  • Landed costs (percentage or fixed amount per rule) cover freight, customs and handling.
  • The result is the calculation cost — the amount the margin is applied to.
  • Margin or markup according to the rule.
  • VAT according to the product's tax class and your store's base country — compound taxes are handled too.
  • Rounding happens ONCE, on the number the customer sees.

No guessing

The "Calculation" column in every preview shows exactly these steps with numbers for each individual product. On the product page, "Why this price?" does the same.

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