Cost Plus Pricing Calculator
Calculate a selling price using cost-plus pricing by adding a markup percentage to your cost.
Cost Plus Pricing Calculator
Calculate a selling price using cost-plus pricing by adding a markup percentage to your cost.
Real-World Examples
Cost: $200, Markup: 50%
Price: $300, Profit: $100
Cost: $2.50, Markup: 150%
Price: $6.25, Profit: $3.75
Cost: $4,000, Markup: 20%
Price: $4,800, Profit: $800
Common Mistakes to Avoid
Confusing markup with margin
Fix: A 50% markup on a $100 cost yields a $150 price with a 33.3% margin, not a 50% margin. Markup is relative to cost; margin is relative to selling price.
Using only product cost as the base
Fix: For services or complex products, the cost base should include labor, materials, and overhead. Using only materials understates cost and erodes profitability.
Ignoring competitor pricing
Fix: Cost-plus guarantees a profit on paper but may price you out of the market. Always validate the resulting price against what customers are willing to pay and what competitors charge.