Small Business ToolsFOR DUMMIES · PLAIN & SIMPLE
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Product pricing

Calculate a selling price that covers materials, your time, fees and a target profit margin.

Try your numbers

Total ingredient or material cost.
Boxes, bags, labels and wrapping.
Include preparation and production time.
What you want to pay for your time.
An allocation for electricity, rent or other costs.
Number of sellable items produced.
Profit as a percentage of the selling price.
Percentage of the selling price charged in fees.
Any fixed selling fee allocated to one item.

The starting numbers are an example. Use one currency throughout. Currency selection changes the display, not the amounts.

Your result

How to price a product without guessing

Start with a batch: add materials, packaging, labour and an allocation of overhead costs. Divide that total by the number of sellable items. This is your estimated cost per item.

The calculator then adds your fixed selling fee and allows for percentage-based selling fees and your target profit margin. The suggested price rounds upward to the next cent so that rounding does not reduce your target margin.

Example

A batch costs 330 and produces 10 items, so each item costs 33. With a 30% target margin, a 5% selling fee and a fixed fee of 1 per item, the suggested price is 52.31 before tax.

Margin is not markup

A 30% margin means profit is 30% of the selling price. Adding 30% to your cost is a 30% markup and produces a lower margin. Percentage fees here are assumed to apply to the selling price, with one fixed fee allocated to each item. If your fee structure differs, adapt the inputs. This is a cost-based estimate; customer demand may support a different price.