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.
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.