Pricing Calculator
Calculate optimal product pricing, profit margins, and break-even points. Determine competitive pricing strategies, analyze profitability, and make data-driven pricing decisions for your business.
Cost Information
Pricing Strategy
Volume Information
Pricing Analysis Results
Recommended Price
Profit Per Unit
Profit Margin
Markup Percentage
Pricing Breakdown
Financial Projections
Monthly Revenue
Monthly Profit
Annual Revenue
Annual Profit
Competitive Analysis
How the Pricing Calculator Works
Enter Cost Information
Input your product cost price and additional expenses like overhead, marketing, and shipping costs to establish your total cost base.
Choose Pricing Strategy
Select your preferred pricing method: markup percentage, profit margin, or target selling price. Add competitor pricing for market comparison.
Set Volume Expectations
Enter expected monthly sales volume and break-even targets to calculate revenue projections and profitability analysis.
Analyze Results
Review recommended pricing, profit margins, financial projections, and competitive positioning to make informed pricing decisions.
Frequently Asked Questions
Markup is the percentage added to your cost price to determine selling price. Profit margin is the percentage of profit relative to the selling price. For example, a 50% markup on a $10 cost gives a $15 selling price with a 33.33% profit margin ($5 profit ÷ $15 selling price).
Overhead costs should be allocated per unit based on your expected volume. Divide your total monthly overhead (rent, utilities, salaries) by your expected monthly sales volume to get the overhead cost per unit. This ensures all fixed costs are covered in your pricing.
Profit margins vary by industry. Retail typically sees 2-6%, restaurants 3-9%, software 70-95%, and manufacturing 8-15%. Research your specific industry benchmarks and consider factors like competition, market positioning, and business model when setting margins.
Analyze competitor pricing, but don't just match their prices. Consider your unique value proposition, quality differences, and customer service. You can justify higher prices with superior value, or compete on price by optimizing costs and accepting lower margins for higher volume.
Cost-plus pricing (adding markup to costs) ensures profitability but may miss market opportunities. Value-based pricing sets prices based on customer perceived value, potentially allowing higher margins. Use cost-plus as your floor price and value-based pricing to optimize upward.