Pricing Calculator
Find the optimal price for your products using three different pricing strategies. Compare cost-plus, value-based, and competitive pricing to maximize profitability.
Pricing Calculator
Find the optimal price for your product
Materials, manufacturing
Fixed costs / units
What customers would pay
Recommended Price
$58.33
40% margin ($23.33/unit)
$5,833
-$2,667
Loss
215
-$32,004
Strategy Comparison
| Strategy | Price | Margin | Profit/Mo |
|---|---|---|---|
| Cost-Plus(Selected) | $58.33 | 40% | -$2,667 |
| Value-Based | $70.00 | 50% | -$1,500 |
| Competitive | $71.25 | 51% | -$1,375 |
Your Price Range
Floor = 10% above cost | Ceiling = 85% of perceived value
- *You're priced 20%+ below competition - consider if you're leaving money on the table
- *You need 115 more sales to break even at this price
How to Use This Calculator
Enter your product cost (materials, manufacturing) and overhead per unit (your fixed costs divided by expected units sold).
Add your competitor price and perceived value to enable value-based and competitive pricing calculations.
Select your primary pricing strategy to see the recommended price, then compare all three approaches in the strategy comparison table.
Understanding Your Results
The strategy comparison shows prices, margins, and monthly profit for all three approaches side by side so you can make an informed decision.
The price range shows your floor (minimum to cover costs) and ceiling (maximum before losing customers) to help you understand your pricing flexibility.
Break-even units tells you how many you need to sell at the recommended price to cover your fixed costs.
Frequently Asked Questions
What is cost-plus pricing?
Cost-plus pricing adds a fixed markup to your total costs. For example, if your product costs $20 and you want a 50% margin, you price at $40. It is simple and ensures profitability, but may leave money on the table if customers would pay more.
What is value-based pricing?
Value-based pricing sets prices based on the perceived value to customers rather than your costs. If customers see your product as worth $100, you might price at $70-80 regardless of whether it costs you $10 or $50 to make.
When should I use competitive pricing?
Competitive pricing works well in commodity markets where products are similar. Match or slightly undercut competitors to win on price. However, this can lead to race-to-the-bottom dynamics and thin margins.
What is a good profit margin?
It varies by industry. Software typically achieves 70-90% gross margins. Retail sees 30-50%. Restaurants average 60-70% on food. Compare your margin to industry benchmarks and ensure it covers all costs plus desired profit.
How do I determine perceived value?
Research your target customers through surveys, interviews, and competitor analysis. Ask what they currently pay for alternatives, what problems your product solves, and how much those problems cost them. The value of solving a $10,000 problem is worth more than solving a $100 problem.
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