Pricing Graph
The chart compares unit cost, realized price, list price, invoice price, and profit.
Calculated Pricing Table
| Metric | Value |
|---|
Advanced Pricing Inputs
Example Data Table
| Units | Total Cost Inputs | Markup | Discount | Fee | List Price | Profit per Unit | Batch Profit |
|---|---|---|---|---|---|---|---|
| 500 | Materials 6000, Labor 2500, Overhead 1500, Extras 4.70/unit | 35% | 10% | 8% | $41.58 | $8.93 | $4,464.12 |
| 300 | Materials 3600, Labor 1800, Overhead 900, Extras 3.40/unit | 28% | 5% | 6% | $28.21 | $5.31 | $1,593.00 |
| 1000 | Materials 9000, Labor 5000, Overhead 3000, Extras 2.90/unit | 40% | 12% | 10% | $32.53 | $5.61 | $5,610.00 |
Formula Used
1) Production Cost per Unit
(Material Cost + Labor Cost + Overhead Cost) ÷ Units
2) Adjusted Core Cost per Unit
Production Cost per Unit × (1 + Wastage %)
3) Total Unit Cost
Adjusted Core Cost + Packaging per Unit + Shipping per Unit + Variable Selling Cost per Unit
4) Target Realized Price
Total Unit Cost × (1 + Markup %) ÷ (1 - Channel Fee %)
5) List Price Before Tax
Target Realized Price ÷ (1 - Discount %)
6) Final Invoice Price
Rounded List Price + (Rounded List Price × Tax %)
7) Profit per Unit
Actual Realized Price - Channel Fee Amount - Total Unit Cost
8) Gross Margin %
Profit per Unit ÷ Actual Realized Price × 100
How to Use This Calculator
- Choose the currency symbol for display and exports.
- Enter the batch size so total costs can be converted into unit cost.
- Fill in material, labor, and overhead totals.
- Add per-unit packaging, shipping, and variable selling costs.
- Set wastage, target markup, discount, tax, and channel fee percentages.
- Add a competitor price when you want benchmark comparison.
- Select a rounding increment and rounding mode.
- Press Calculate Pricing to show results above the form.
- Use the CSV and PDF buttons to export the pricing summary.
Frequently Asked Questions
1) What is cost plus pricing?
Cost plus pricing starts with unit cost and adds a target markup. It is widely used when businesses need predictable margins and simple pricing logic across many products.
2) Why should I include channel fees?
Marketplace commissions and payment fees reduce what you actually keep. Ignoring them can make an apparently profitable price underperform in real sales conditions.
3) Why does the calculator use realized price and list price?
Realized price is what you keep before tax after discount. List price is the advertised pre-tax price needed to reach that realized amount after planned markdowns.
4) Should tax be included in markup?
Usually no. Tax is often added after pricing is determined because it is collected on behalf of authorities and does not represent operating profit.
5) What does wastage allowance do?
Wastage increases core production cost to reflect scrap, spoilage, returns, or process inefficiency. It helps create a more realistic cost floor for pricing decisions.
6) When should I round prices?
Round prices when your business uses catalog rules, retail conventions, or psychological price endings. A chosen increment keeps pricing consistent across product lines.
7) Can this calculator help with competitor positioning?
Yes. The competitor field compares your recommended list price against a benchmark, making it easier to judge whether your offer is premium, aligned, or underpriced.
8) Is higher markup always better?
Not always. Higher markup can hurt demand, reduce conversion, or move you above market expectations. Strong pricing balances margin goals with competitiveness and customer value.