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Price Position Index Calculator

Reviewed for 2026, updated September 8, 2026.

Shows where your price sits against up to four competitor prices as an index, a percentage gap to the average and to the cheapest, and a rank, for brands and retailers checking price positioning on a single product.

Your numbers

Results update as you type.

Your estimate

Price index (100 = equal to basis)...
Your price vs competitor average...
Your price vs lowest competitor...
Where you rank...

Estimates only. Assumptions are listed below, and you can change every input.

Knowing that a competitor is cheaper is not the same as knowing where you sit. A product can be the second cheapest of five listings and still be 8% above the market average, or the most expensive listing and only 2% above the cheapest. Positioning decisions go wrong when teams react to one competitor's number instead of the whole set, and a price index is the simplest way to see the whole set at once.

This calculator takes your price and up to four competitor prices for the same product. It computes the competitor average and the lowest competitor price, then expresses your price as an index against the basis you choose, where 100 means equal, 110 means 10% above and 90 means 10% below. It also shows your percentage gap to the average and to the cheapest listing, and ranks your price among all the prices entered. It is a snapshot of the numbers you type in, not a market survey, so make sure the prices are like for like.

How to use this tool

  1. Enter your current selling price for the product, then the prices of up to four competitors for the same product and variant. Leave unused competitor fields at 0.
  2. Choose whether the index should be measured against the competitor average or the lowest competitor price. Average is the usual choice for positioning; lowest is useful when one rival sets the market floor.
  3. Read the index, the gaps and the rank together. An index near 100 with a large gap to the cheapest means one outlier is dragging the market down, not that you are out of position.

What the math assumes

  • A competitor price left at 0 is treated as not entered and is excluded from the average, the lowest price and the rank.
  • The price index is your price divided by the basis price times 100, so 100 means equal, values above 100 mean you are priced higher, and values below 100 mean you are priced lower.
  • The competitor average is a simple average of the prices entered, with no weighting for a competitor's size, traffic or market share.
  • Prices are compared exactly as entered; the tool does not adjust for shipping, tax, bundle contents, pack size or variant differences, so enter like for like prices.
  • A competitor at exactly your price is counted as a tie, not as cheaper, when ranking.

Frequently asked questions

What is a good price index to aim for?

There is no universal target. A premium brand may sit at 110 to 120 by design, while a volume retailer may need to hold 95 to 100. The useful part is tracking how your index moves over time and whether it moves for a reason you chose.

Should I use the average or the lowest competitor as the basis?

Use the average when you sell against several comparable competitors and want to know where you sit in the pack. Use the lowest when shoppers compare against one price leader or a marketplace buy box, since that is the number they actually see first.

Why does my rank say 2nd lowest when my index is above 100?

Because rank and index measure different things. Rank counts how many listings are cheaper than you; the index compares you to the average, which one expensive competitor can pull up. Both are worth watching, and disagreement between them usually means the set of prices is spread wide.

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