Pricing Calculator
Calculate the right selling price from cost and target margin. Compare against competitor pricing to position your product or service correctly.
Part of our Business Calculators collection.
Pricing Calculator
Free online calculator
$
Total cost to produce or acquire
%
Retail: 50%+, SaaS: 70–80%, Services: 40–60%
$
Results update automatically as you type
How to Use This Calculator
- 1
Enter your total cost.
- 2
Set your target gross margin.
- 3
Optionally enter competitor price to see positioning.
- 4
See recommended selling price and profit per unit.
Cost-Plus Pricing Formula
Price = Cost / (1 − Margin%) Examples: $25 cost at 40% margin → $41.67 price $25 cost at 50% margin → $50.00 price $25 cost at 70% margin → $83.33 price Markup % = Margin% / (1 − Margin%)
Example Calculation
Example: $25 cost, 40% margin
Inputs
cost: 25targetMargin: 40
Result
$41.67 selling price | $16.67 profit
$25 / (1 − 0.40) = $41.67.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a % of selling price. Markup is profit as a % of cost. A 40% margin = 66.7% markup. Always clarify which you mean — confusing them leads to underpricing.
What margin should I aim for?
Varies by industry: Retail products 50%+, SaaS 70–80%, Services 40–60%, Restaurants 65–70% food margin, Manufacturing 30–50%. Compare to industry benchmarks before setting targets.
Should I always match competitor pricing?
Not necessarily. If you have a cost advantage, you can undercut. If you have a quality advantage, you can charge more. Price on value delivered, not just competitor comparison.