Enter Contract Pricing Inputs
Result cards appear above this form after submission so the pricing summary stays immediately visible below the header.
Pricing Overview Graph
Sample Contract Pricing Example
| Contract | Cost/Unit | Qty | Markup % | Discount % | Fixed Costs | Shipping | Commission % | Tax % |
|---|---|---|---|---|---|---|---|---|
| Maintenance Renewal A | $120.00 | 25 | 30 | 5 | $250.00 | $90.00 | 4 | 10 |
| Consulting Addendum B | $80.00 | 40 | 22 | 3 | $300.00 | $60.00 | 2.5 | 8 |
| Supply Contract C | $150.00 | 18 | 35 | 7 | $180.00 | $120.00 | 5 | 12 |
Core Pricing Formulas
Sell Price per Unit = Cost per Unit × (1 + Markup % ÷ 100)
Gross Sales = Sell Price per Unit × Quantity
Discount Amount = Gross Sales × (Discount % ÷ 100)
Net Revenue Before Tax = Gross Sales − Discount Amount + Shipping Charge
Total Internal Cost = (Cost per Unit × Quantity) + Fixed Costs
Commission Amount = Net Revenue Before Tax × (Commission % ÷ 100)
Profit = Net Revenue Before Tax − Total Internal Cost − Commission Amount
Margin % = (Profit ÷ Net Revenue Before Tax) × 100
Break-even pricing reverses the revenue formula after accounting for discount, shipping credit, and commission drag.
How to Use This Calculator
Enter a contract or proposal name first so your exported files stay organized. Add the unit cost and quantity that reflect the actual deliverable, product, or service block.
Set the markup percentage to define your list price. Apply any client discount, then enter fixed internal costs, shipping charged to the client, and expected commission.
Use tax rate for the invoice layer only. The tool keeps tax separate from profit because taxes are normally collected and remitted, not treated as earnings.
After calculation, review the result cards, detailed summary table, and chart. Then export the results as CSV for spreadsheets or PDF for proposal support.
Frequently Asked Questions
1. What does markup mean here?
Markup is the percentage added to unit cost to create the initial selling price. It is different from margin, which measures profit as a share of revenue.
2. Why is tax excluded from profit?
Tax is usually billed to the client and passed to authorities. Because it is not operational income, the calculator keeps it outside core profit measurements.
3. Should shipping be entered as revenue or cost?
This version treats shipping as a charge billed to the client. If shipping is an internal expense instead, add it to fixed costs for a more conservative result.
4. What is the difference between markup and margin?
Markup compares gain to cost. Margin compares gain to revenue. The two percentages are related, but they are never equal unless profit is zero.
5. How is break-even unit price estimated?
The calculator works backward from total cost and commission effect, then adjusts for discount and shipping credit. That gives the minimum pre-tax unit price needed.
6. Can I use this for services instead of products?
Yes. Treat each service block, hour pack, or milestone as a unit. Use quantity for the number of billable units included in the agreement.
7. Why include fixed costs and commission together?
Fixed costs capture internal overhead, while commission reflects variable selling expense. Including both gives a more realistic view of proposal-level profitability.
8. What export format should I choose?
Use CSV when you want spreadsheet analysis or audit trails. Use PDF when you want a quick, portable summary for approval notes or internal review.