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
- Enter direct unit production cost.
- Enter allocated overhead cost per unit.
- Specify target markup percentage.
- 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.
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