Pricing Calculator
Determine the optimal selling price for your products based on cost, desired margin, and competitor pricing.
* All calculations are approximate.
How Pricing Calculator Works?
Determine the optimal selling price for your products based on cost, desired margin, and competitor pricing.
Enter the cost price of your product (direct cost of production or purchase).
Enter your desired profit margin as a percentage of the selling price.
Enter the overhead percentage (rent, utilities, salaries, etc.) as a percentage of cost.
Optionally enter a competitor's price to see how your price compares.
The calculator adds overhead to cost, then determines the selling price needed to achieve your desired margin.
Formula Used
Total Cost = Cost Price x (1 + Overhead% / 100) | Selling Price = Total Cost / (1 - Desired Margin% / 100) | Profit Per Unit = Selling Price - Total Cost | Markup (%) = (Profit Per Unit / Total Cost) x 100
This calculator uses margin-based pricing, where the desired margin is a percentage of the selling price (not of the cost). Ensure you include all overhead costs for an accurate minimum viable selling price.
Important — Read Before You Decide
- Cost-plus pricing ignores market demand and perceived value
- Competitor pricing should inform but not dictate your price
- Overhead costs are often underestimated in pricing calculations
- Price elasticity varies — some products tolerate higher margins
- Psychological pricing points can significantly impact sales volume
- Channel-specific costs (marketplace fees) affect net margins
- Regular price reviews are essential as costs and markets change
What Happens If You Ignore These?
- Pricing too low leaves money on the table and signals low quality
- Pricing too high drives customers to competitors
- Ignoring overhead leads to hidden losses on every sale
- Not monitoring competitor prices causes market share erosion
- Fixed pricing without reviews becomes outdated as costs change
Smart Tips
- Include all overhead costs for accurate pricing
- Test different price points to find optimal demand
- Update pricing quarterly as costs and competition change
- Use competitor price as reference, not as your target
- Factor in payment gateway fees and shipping in total cost
Frequently Asked Questions
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