Pricing Strategy Calculator
Compare cost-plus, markup, and market-based pricing strategies. Calculate optimal price, margins, and break-even.
Inputs
Results
Cost-Plus Price
$41.67
≈ 8 cups of coffee
How to Use This Calculator
- Enter cost per unit and your desired profit margin (%).
- Set market/competitor price, monthly fixed costs, and expected monthly units sold.
- Review Cost-Plus Price, Market Price Margin (%), Break-Even Units, and Monthly Profit.
- Compare cost-plus and market-based prices to decide the right positioning strategy.
How the result changes with Cost per Unit
| Cost per Unit | Cost-Plus Price |
|---|---|
| $1,000.00 | $1,666.67 |
| $3,500.00 | $5,833.33 |
| $6,500.00 | $10,833.33 |
| $9,000.00 | $15,000.00 |
What each input means
- Cost per Unit
- Total variable cost to produce or acquire one unit of your product
- Desired Margin
- Target profit margin percentage you want to achieve on each sale
- Market/Competitor Price
- Average price competitors charge for a similar product or service
- Monthly Fixed Costs
- Recurring monthly expenses like rent, salaries, and insurance
- Expected Monthly Units
- Projected number of units you expect to sell each month
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersCost per Unit = 25, Desired Margin = 40, Market/Competitor Price = 50, Monthly Fixed Costs = 5000 = 5 input(s) provided
- Calculate Cost-Plus PriceCost-Plus Price41.67 = $41.67
- Calculate Markup PriceMarkup Price35 = $35
- Calculate Market Price MarginMarket Price Margin50 = 50
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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