Product Pricing Calculator
Price your products profitably. Choose cost-plus or target margin pricing and get a recommended price with margin analysis.
How It Works
Supports cost-plus (cost × markup) and target margin (cost / (1−margin)) methods. Optionally compares your margin against a competitor price.
Formula
Cost-Plus: Price = Cost × (1 + Markup%)
Target Margin: Price = Cost ÷ (1 − Margin%)
Example
Cost $30, target 40% margin:
Price = $30/0.60 = $50. Markup = 66.7%.
When to Use This Calculator
Use when launching products, reviewing existing prices, or responding to competitor price changes.
Common Mistakes to Avoid
- Not knowing true total cost — include materials, labor, shipping, fees, and overhead.
- Blindly matching competitor price — their costs may differ.
- Ignoring price elasticity — higher price can signal quality in some markets.
Frequently Asked Questions
Cost-plus pricing?
Adds fixed markup to total cost. Simple and ensures profitability but ignores market demand.
Value-based pricing?
Price based on perceived customer value, not cost. Higher margins but requires market knowledge.
How to price a service?
Hourly rate × hours + expenses + profit margin, or package-based pricing.
Keystone pricing?
100% markup = 2× cost = 50% gross margin. Common retail rule of thumb.
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Last Updated: July 4, 2026