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.

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Real-World Examples

Electronics retailer

Cost: $200, Markup: 50%

Price: $300, Profit: $100

Bakery

Cost: $2.50, Markup: 150%

Price: $6.25, Profit: $3.75

Contractor

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.

Frequently Asked Questions