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Product Pricing Calculator

Calculate retail price from COGS and target profit margin.

Inputs

$
%
$
$

Results

Recommended Retail Price

$38.33

≈ 8 cups of coffee

Gross Profit Per Unit$15.33
Markup Percentage66.7%
Actual Margin40%
Total Cost Per Unit$23.00
Break-Even Price$23.00
How to Use This Calculator
  1. Enter Cost of Goods (COGS) per unit.
  2. Set your Target Margin (%) and add Overhead per Unit.
  3. Include Shipping Cost per unit if you offer free shipping.
  4. Review Recommended Retail Price, Gross Profit per Unit, and Markup Percentage.
  5. Adjust the target margin to stay competitive while maintaining profitability.

How the result changes with Target Margin

Target MarginRecommended Retail Price
11$25.84
35$35.38
65$65.71
89$209.09

What each input means

Cost of Goods (COGS)
Direct cost to produce or purchase the product.
Target Margin
Desired profit margin as a percentage of selling price.
Overhead Per Unit
Allocated overhead cost per unit (warehousing, packaging).
Shipping Cost
Average shipping cost per unit.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Cost of Goods (COGS) = 15, Target Margin = 40, Overhead Per Unit = 3, Shipping Cost = 5 = 4 input(s) provided
  2. Calculate Recommended Retail Price
    Recommended Retail Price
    38.33 = $38.33
  3. Calculate Gross Profit Per Unit
    Gross Profit Per Unit
    15.33 = $15.33
  4. Calculate Markup Percentage
    Markup Percentage
    66.7 = 66.7

Engine last updated . Checked against 2 independently-derived tests how we verify calculators.

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