# Competitor Price Gap Calculator

> Enter your price for one product and what your competitors charge for it. See how far you are from the lowest and the average price, where you rank, and what matching or beating the lowest price would do to your margin. Everything runs in your browser.

*Source: https://shopsavvy.com/tools/price-gap-calculator*

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## How it calculates

- Gap to the lowest = your price − the lowest competitor price; as a percent, divided by the lowest competitor price. A positive gap means you are dearer.
- Gap to the average uses the mean of the competitor prices you entered. The median is shown too, because one unusually cheap or dear competitor moves the average more than the median.
- Price index = your price ÷ the average competitor price × 100. 100 means you sit exactly at the market average; 110 means 10% above it.
- Rank is 1 plus the number of competitors cheaper than you, so 1 means nobody is cheaper.
- The match price is the lowest competitor price. The beat price is the lowest price minus your undercut percent, rounded down to the cent.
- Margin = (price − unit cost) ÷ price. Enter your landed unit cost to see your margin now and at the match and beat prices.
- Only competitor prices above zero count. Use prices for the same product, condition and pack size; shipping and membership-only prices change the comparison, so either include shipping everywhere or nowhere.

## Worked example

Your price $49.99, unit cost $31.00, competitors at $44.99, $47.50, $52.00, undercut 1%:

- Lowest $44.99, average $48.16, median $47.50, highest $52.00
- Gap to the lowest: $5.00 (11.1%); gap to the average: $1.83 (3.8%)
- Price index: 103.8; rank 3 of 4 (1 = cheapest)
- Match at $44.99 (margin 31.1%); beat at $44.54 (margin 30.4%); margin now 38%

## FAQ

**What is a price gap?** The difference between your price and a competitor’s price for the same product. A positive gap means you charge more; a negative gap means you are cheaper. Expressed as a percent of the competitor’s price, it lets you compare gaps on cheap and expensive products.

**What is a price index in retail?** Your price divided by a reference price, times 100. With the average competitor price as the reference, 100 means you are priced at the market average, 95 means 5% below it and 120 means 20% above it. Tracking the index over time shows whether you are drifting away from the market.

**Should I always match the lowest price?** No. The lowest price can come from a clearance sale, a marketplace seller or a store that pays for it in other ways. Check the margin at the match price first: if it falls below what the product needs to earn, holding your price or matching the median may be the better call.

**How do I compare prices fairly?** Compare the same product, condition and pack size, and treat shipping the same way for every store. A member price, a coupon or a bundle is a different offer, not a lower price for the same one.

**How do I keep these numbers current?** Competitor prices change often, so a gap you worked out last week may already be wrong. ShopSavvy for Business checks your products at competing retailers on a schedule (refreshes from hourly to weekly, depending on plan) and alerts you when a price changes, with a 14-day trial on every Business plan.

## Related

- [ShopSavvy for Business](https://shopsavvy.com/business): competitor price monitoring with alerts
- [Competitor price tracking spreadsheet](https://shopsavvy.com/templates/competitor-price-tracking-spreadsheet)
- [All free tools](https://shopsavvy.com/tools)

Last reviewed 2026-10-12.