Set local prices per market with purchasing-power parity adjustments.
Inputs
Per-market pricing
Market
FX Rate
VAT/GST
Recommended Price
USD Net
About this calculator
Multi-currency pricing is harder than just running USD prices through an exchange-rate converter. Different markets have different VAT rates, different competitive contexts, and different psychological price points. Pricing identically (in USD-equivalent) across markets leaves money on the table and creates uncomfortable customer experiences.
This calculator factors in three things per market: current exchange rate, local VAT/GST that you must collect and remit, and a psychological-price rounding pass. The output is a recommended local price that maintains your USD-equivalent net margin while feeling appropriately priced in the local market.
The core insight: local price should target USD-net-margin equivalence, not USD-headline-price equivalence. A UK customer paying £100 (inclusive 20% VAT) yields you £83.33 = ~$103 USD-net. That\'s the number that should match your home market\'s gross — not the £/$ exchange rate alone.
Pair with the Currency Conversion Margin and VAT/GST Impact calculators for full international pricing economics. Most successful global DTC brands set USD-net-margin targets and let platform pricing rules handle the per-market conversion + VAT addition + psychological rounding.
Frequently asked questions
Should I price the same in every currency?
No. Different markets have different willingness-to-pay and competitive context. UK and EU customers expect prices similar to UK/EU competitors; pricing in straight USD-converted prices often makes you appear too expensive (or too cheap).
What's purchasing-power parity (PPP)?
PPP adjusts prices based on local cost of living. A $50 product in the US might be $45 in UK (slightly higher purchasing power) or $35 in some emerging markets. PPP-adjusted pricing maximizes revenue across regions vs single-conversion pricing.
How do I price for absorbing VAT?
Add VAT to USD-equivalent target margin. UK customer pays £100 inclusive VAT. £100/1.20 = £83.33 net to you. If your target USD margin is $25 and the conversion gives you $100 (£83.33 × 1.20 USD/GBP), you're net $25 after FX and VAT — matching the home market.
Should I round to "psychological" prices?
Yes. £99 outperforms £100 by 5-10% in most consumer categories. €49.99 vs €50. Always round local prices to local psychological numbers, even if the USD-equivalent is slightly different across markets.
How often should I update prices?
Quarterly minimum. Major rate moves (5%+) trigger immediate re-evaluation. Most platforms (Shopify Markets, Stripe) support automated rule-based pricing — set targets in USD, rules handle conversion + rounding to psychological prices automatically.