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Pricing planner.

Calculate a price from your costs and target operating margin. Compare it with your current price before you test it with customers.

No account. No email. Your inputs stay in this page.Refreshing or leaving the page clears your work.

YOUR ASSUMPTIONS

Build a workable price.

Start with one product, service, or subscription and its monthly sales volume.

Costs incurred to deliver one additional unit.
Allocated across your expected monthly sales.
At least one unit is needed to allocate fixed costs.
Profit as a share of revenue, after these fixed and variable costs.
Compare your current or proposed price with your target.

All money amounts are in US dollars (USD).

YOUR PRICING SCENARIO
Price at 40% margin
$75.00
Based on your costs and volume
Current operating margin
40%
After direct and allocated fixed costs
Monthly operating profit
$30,000
1,000 units at your current price

Price against the cost to deliver

PER UNIT / USD
Cost to deliver includes direct unit cost plus fixed costs spread over your expected monthly sales. A target-margin price is a starting point to test with customers.
Direct cost / unit$35.00
Fixed costs / unit$10.00
Cost to deliver / unit$45.00
THE DECISION IN FRONT OF YOU

At $75.00 and 1,000 monthly sales, the model produces $30,000 in monthly operating profit. Your next test is whether customers value the offer at that price.

View your pricing economics
View your pricing economics
MeasureYour scenario
Monthly sales revenue$75,000
Monthly total costs$45,000
Contribution per unit$40.00
Gross margin before fixed costs53.33%
Operating margin after fixed costs40%
Markup on fully loaded cost66.67%
How this tool works

Target price = (unit cost + monthly fixed costs ÷ monthly units) ÷ (1 − target operating margin)

Target margin is a percentage of revenue. Markup is a percentage of cost; they are different measures. This tool uses an operating margin after allocating fixed costs across your expected monthly sales. Gross margin excludes those fixed costs.

Cost-based pricing does not establish what customers will pay. Compare the result with customer value, alternatives, demand, and your delivery capacity. Sales volume changes the fixed cost assigned to each unit. Taxes, financing costs, and discounts are excluded unless included in your inputs.

business.gov.au: Choose a pricing strategy

General business planning only. This is a scenario based on your inputs, not financial, tax, or investment advice.

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