Business tools

Pricing Calculator

Find a cost-based selling price using a target markup, margin or total profit goal.

Use the same currency for each cost. The generic dollar sign is for display only; no currency is selected or converted.

The calculation runs locally in your browser. No input values are saved or sent to a server.

Choose the pricing objective you want to calculate.

The cost directly associated with producing or delivering one unit.

Indirect costs allocated to a unit, such as rent, software or administration.

Markup expresses profit as a percentage of total cost.

Markup example

With $60 in direct cost, $20 in overhead per unit and a 50% markup, total unit cost is $80, recommended selling price is $120, profit per unit is $40 and gross margin is about 33.33%.

About this calculator

Direct cost, overhead, markup and margin

Direct cost is tied to producing or delivering a unit. Overhead includes indirect costs allocated to it. Markup compares profit with cost; margin compares profit with selling price.

  • Total unit cost = direct cost + allocated overhead.
  • Markup price = total unit cost × (1 + markup percentage).
  • Margin price = total unit cost ÷ (1 − target margin percentage).

Use the result as a reference

This is a cost-and-profit calculation, not a complete pricing strategy. Market demand, competition, customer value and positioning may justify a different final price.

Frequently asked questions

What is the difference between markup and margin?

Markup expresses profit as a percentage of cost. Margin expresses profit as a percentage of selling price.

Can I use a 100% target margin?

No. A 100% margin would divide by zero in the price formula. Choose a target below 100%.

Does this determine the right market price?

No. It provides a financial reference point from your inputs. Consider demand, competition, customer value and positioning too.

For planning purposes only. The result is not a universal price recommendation or a complete pricing strategy.