Free Pricing Calculator

Pricing works best when you check it from two directions: what price covers your costs and hits your target margin, and what the market is already charging for similar products or services. This calculator starts with cost-plus pricing to get a number you can defend, then compares it against a competitor's price so you know whether you're positioned above, below, or in line with the market.

The formulas

• Suggested price = Cost per Unit ÷ (1 − Desired Margin)
• Profit per unit = Suggested Price − Cost per Unit
• Markup on cost = (Profit per Unit ÷ Cost per Unit) × 100
• Margin at competitor's price = ((Competitor Price − Cost per Unit) ÷ Competitor Price) × 100

Frequently asked questions

Why divide by (1 − margin) instead of multiplying? Margin is a percentage of the selling price, not the cost. Multiplying cost by a percentage gives you markup, which understates the actual margin you'd earn — dividing by (1 − margin) solves for the price that produces your target margin exactly.

What is charm pricing? Ending a price in .99 or .95 (like $19.99 instead of $20) is a common psychological pricing tactic that can make a price feel meaningfully lower, even though the difference is small.

What if my price is much higher than my competitor's? That's not automatically a problem — it depends on how you're positioned. A higher price can work if your product offers more value, better quality, or stronger service. But if there's no clear difference customers would notice, a large gap is worth a second look.