Cost-Plus Pricing Calculator
The cost-plus pricing calculator applies the classic pricing method used across retail, trades and manufacturing: take your total cost and add a fixed percentage on top. Enter the cost per unit and the markup you want, and it returns the price to charge, the profit per unit and the margin that price yields. It's a fast, repeatable way to price consistently. Results are estimates for planning; confirm pricing that drives real decisions with your accountant.
Calculator
The formula
Price = cost × (1 + markup ÷ 100)
Cost-plus pricing multiplies your total unit cost by the markup percentage and adds it on. The strength of the method is consistency; its limit is that it ignores what customers will pay and what competitors charge, so pair it with market checks.
Worked example
Your total unit cost is $12 and you add a 35% markup.
- Profit added = 12 × 35% = $4.20
- Price = 12 + 4.20 = $16.20
- Margin = 4.20 ÷ 16.20 × 100 = 25.9%
So cost-plus pricing gives a $16.20 price and a 25.9% margin.
Frequently asked questions
- What should I include in total unit cost?
- Ideally every direct cost of getting one unit ready to sell — materials, the labour tied to it, and per-unit shipping or packaging. Leaving costs out inflates your apparent margin.
- Is cost-plus the best pricing method?
- It is simple and consistent, but it ignores demand and competition. Many businesses start with cost-plus, then adjust toward what the market will bear.
- How is this different from the markup calculator?
- The maths is identical — cost-plus pricing is markup pricing. This page frames it around building a price from total cost; use whichever wording fits how you think about it.
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