Product Pricing Calculator
Calculate retail price from COGS and target profit margin.
Inputs
Results
Recommended Retail Price
$38.33
≈ 8 cups of coffee
How to Use This Calculator
- Enter Cost of Goods (COGS) per unit.
- Set your Target Margin (%) and add Overhead per Unit.
- Include Shipping Cost per unit if you offer free shipping.
- Review Recommended Retail Price, Gross Profit per Unit, and Markup Percentage.
- Adjust the target margin to stay competitive while maintaining profitability.
How the result changes with Target Margin
| Target Margin | Recommended 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
- Identify Input Parameters4 parametersCost of Goods (COGS) = 15, Target Margin = 40, Overhead Per Unit = 3, Shipping Cost = 5 = 4 input(s) provided
- Calculate Recommended Retail PriceRecommended Retail Price38.33 = $38.33
- Calculate Gross Profit Per UnitGross Profit Per Unit15.33 = $15.33
- Calculate Markup PercentageMarkup Percentage66.7 = 66.7
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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