Product Pricing Strategy Calculator

Calculate your product price based on total cost plus desired profit margin.

Material/COGS Per Unit ($)

Labor Cost Per Unit ($)

Overhead Per Unit ($)

Shipping/Packaging Per Unit ($)

Desired Profit Margin (%)

Expected Monthly Units Sold

Pricing Strategy

Find the break-even point and optimal price point for your product.

Monthly Fixed Costs ($)

Variable Cost Per Unit ($)

Selling Price Per Unit ($)

Current Monthly Unit Sales

Formula

Margin Price = Cost / (1 - Margin%). Markup Price = Cost x (1 + Markup%). Break-Even Units = Fixed Costs / (Price - Variable Cost). Contribution Margin = Price - Variable Cost.

Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price (Profit / Price). Markup is profit as a percentage of cost (Profit / Cost). A 50% markup equals a 33% margin. A 50% margin equals a 100% markup. Margin can never exceed 100%, but markup can.

What is keystone pricing?

Keystone pricing means doubling the wholesale cost (100% markup or 50% margin). It is a simple, traditional retail pricing method. While easy to implement, it may not be optimal for all products -- low-cost items may need higher markup, while expensive items may need less.

You may also need

Wholesale to Retail Markup Calculator

Calculate retail prices from wholesale costs with proper markup and margin calculations for resellers and retailers.

Finance

Restaurant Food Cost Calculator

Calculate your restaurant food cost percentage, menu pricing, and ideal food cost targets to maximize profitability.

Finance

Shipping Rate Comparison Calculator

Compare shipping rates between USPS, UPS, and FedEx for your package size and weight to find the cheapest option.

Finance