Cost-plus Pricing Calculator

Calculate a selling price from unit cost and target margin.

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About Cost-plus Pricing Calculator

Cost-plus Pricing Calculator determines unit selling price by adding a fixed markup percentage to total product unit cost.

How to use Cost-plus Pricing Calculator

  1. Enter direct unit production cost.
  2. Enter allocated overhead cost per unit.
  3. Specify target markup percentage.
  4. Click Calculate to view unit selling price and profit per unit.

Examples

Direct Cost: £20.00, Overhead: £5.00 (Total Cost: £25.00), Markup: 40% Result: Selling Price: £35.00 (Profit: £10.00 / Margin: 28.57%)

FAQ

What is cost-plus pricing strategy?

Cost-plus pricing calculates selling prices by adding a designated profit markup percentage on top of total unit production costs.

How does cost-plus pricing differ from value-based pricing?

Cost-plus pricing bases price on internal production costs, whereas value-based pricing bases price on perceived customer market value.