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Retail price index calculator

Put one matched competitor price on a 100-point scale against your own selling price. This page uses competitor price divided by your price, so a result below 100 means the competitor is cheaper.

Calculate a price index

How does a matched competitor price compare?

Price index = competitor price ÷ your price × 100

Price index
90.00

The competitor is 10.00% cheaper on this matched item. On this convention, 100 is price parity; below 100 means the competitor is cheaper. Check the match first.

See it alongside

Another example: A 12-pack and a 24-pack are not a fair price match. Check the exact product, size, seller and date. Read Matched SKU →

Download CSV template

Illustrative figures. Change any input to test your own scenario; values stay in this browser page.

How to calculate it

Price index = competitor price ÷ your price × 100

  1. Check that the product, variant, pack size, seller and observation date make a fair match.
  2. Divide the competitor's price by your price, then multiply by 100. A result of 100 means price parity under this convention.
  3. Read the gap with category role, margin floor and the duration of the competitor price before proposing a move.

Illustrative example

A matched $18 price against your $20

Your item is $20 and a competitor lists the same item for $18. The index is $18 ÷ $20 × 100 = 90. On this convention, the competitor is 10% below your price.

A similar-looking 12-pack against your 24-pack is not a valid match. Nor does one low price establish the competitor's position across the whole category. Record the match evidence and compare a consistent basket before changing a price policy.

Check before acting

  • Price-index conventions can run in the opposite direction. State the numerator whenever you share the number.
  • Check promotions, shipping, loyalty conditions and pack sizes before treating a gap as comparable.

Questions about this calculation

What does a price index of 90 mean here?
Using competitor price divided by your price, it means the competitor's matched price is 90% of yours, or 10% cheaper.
Why do other price-index reports reverse the result?
Some reports divide your price by the competitor's price. Both conventions can work, but the numerator must be stated so readers know what above or below 100 means.
Should I match every cheaper competitor price?
No. Check the product match, how long the price lasts, your intended price position and the margin effect before deciding.

Keep working with this number

For a list of products, download this calculator’s CSV template or use the Excel workbook. The workbook can be imported into Google Sheets.

For the underlying term, read the glossary explanation. Then compare it with retail markdown calculator and gmroi calculator for retail inventory.

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