Pricing Calculator

Determine the optimal selling price for your product or service. Factor in costs, desired margin, competitor pricing, and discounts.

Pricing Strategy

$46.30
List Price (before discounts)
$41.67
Effective Price (after 10% discount)
Unit Cost$25.00
Profit per Unit (after discount)$16.67
Effective Margin40.0%

Monthly Revenue$8,333
Monthly Profit$3,333
Annual Profit$40,000

How to Price Your Product

Cost-plus pricing starts with your cost and adds your desired margin:

Price = Cost ÷ (1 − Desired Margin / 100)

If you plan to offer discounts, set your list price higher so the post-discount price still meets your margin target. This calculator factors in an average discount rate.

Consider value-based pricing too: what is the product worth to customers? If customers would happily pay $100 for something that costs you $20, pricing at $80 may be better than cost-plus at $40.

Frequently Asked Questions

Cost-plus pricing works for commodities. Value-based pricing works better for unique products. Competitive pricing matches the market. Most businesses use a blend of these approaches.

Yes. If you plan to run sales, offer bulk discounts, or give trade discounts, set your list price high enough to maintain margins after discounts.

Test and iterate. If sales are strong and margins are healthy, the price may be right — or possibly too low. If sales are slow, consider whether price, marketing, or product-market fit is the issue.

Related Tools