Small Business Pricing Calculator
Use your real cost assumptions to compare four pricing methods side by side: break-even, cost-plus markup, target margin and target profit.
Runs in your browser • No signup • Your calculator inputs are not sent in analytics events
What the calculator compares
The same product can produce very different prices depending on the question you are trying to answer. This tool keeps four common methods separate so markup and margin do not get mixed together.
First calculate the real working cost per unit
The calculator adds direct cost, labor, packaging, seller-paid fulfillment, other variable cost and allocated monthly overhead. Labor cost is based on minutes per unit and the hourly rate you enter. Monthly overhead is divided by the expected monthly units you enter.
If expected unit volume changes, the overhead amount allocated to each unit also changes. That is why the result is a planning scenario rather than a permanent “correct” price.
Markup and margin are not the same
Markup compares profit with cost. Margin compares profit with selling price. For example, a $40 cost with a 50% markup gives a $60 selling price before other fees or discounts. The profit is $20, so the margin is $20 ÷ $60 = 33.3%, not 50%.
Need the formulas explained step by step?
See the practical guide to markup, margin, break-even and target-profit pricing.
How fees and discounts change the list price
If you usually discount from list price, or if a marketplace or payment processor takes a percentage fee, the list price has to carry those assumptions. This calculator uses the values you enter; it does not load or promise current marketplace fee schedules.
A fixed per-sale fee is also treated separately from percentage fees. Enter your own current assumptions and review them whenever your selling channel changes its fee structure.
Which number should you use?
The calculator shows each method instead of choosing a commercial price for you. The highest result can be a conservative planning reference, but a real selling decision still depends on demand, positioning, customer value, competition, taxes, channel rules and your own business strategy.
- Use break-even to understand the floor created by the assumptions you entered.
- Use markup when your process starts from cost and adds a chosen percentage.
- Use target margin when you want profit to represent a chosen share of the selling price.
- Use target profit when you want a specific dollar profit per unit under the scenario.
Common small-business pricing mistakes
- Leaving labor out. Time is still a cost assumption even when the owner performs the work.
- Ignoring overhead. Software, insurance, rent, equipment and other business costs do not disappear just because they are not attached to one unit.
- Calling markup “margin.” They use different denominators and produce different percentages.
- Using stale fee assumptions. Marketplace and payment fees change, so verify the rate you enter.
- Treating one formula as market proof. A mathematically valid price can still be wrong for the market or offer.
Quick questions
Is markup the same as profit margin?
No. Markup is profit compared with cost, while margin is profit compared with selling price. A 50% markup on a $40 cost produces a $60 price and a 33.3% margin before other fees or discounts.
What is a break-even price?
In this calculator, break-even is the estimated list price that covers the entered unit cost and selling fees after the entered discount assumption, before tax.
Does this calculator tell me the correct price to charge?
No. It compares pricing scenarios from the assumptions you enter. Market demand, taxes, local rules, competition and business strategy still need separate judgment.
General planning guidance only. This calculator is not accounting, tax, legal or financial advice.