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Business Pricing (Cost Plus)

Set a selling price by adding markup to your cost.

About Business Pricing (Cost Plus)

Markup is applied to the cost to get a price, and that premium is expressed back as a margin. Cost-plus pricing is simple and consistent, though it ignores what competitors charge for the same value.

Formula

Business Pricing (Cost Plus)

Price = cost x (1 + markup/100)

markup
Percentage added on top of cost to set price

Worked example

With the default values below, Business Pricing (Cost Plus) returns Selling Price of $40.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Unit cost
25
Markupaccepts 0–500 %
60 %

Results

Selling Price
$40.00
Profit per Unit
$15.00
Profit Margin
37.5%

Step by step

  1. 1Values used
  2. 2Business Pricing (Cost Plus)
  3. 3Selling Price= 40.00
  4. 4Profit per Unit= 15.00
  5. 5Profit Margin= 37.5

Assumptions and limits

  • The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Business Pricing (Cost Plus) calculated?

Price = cost x (1 + markup/100) Markup is applied to the cost to get a price, and that premium is expressed back as a margin.

Why does Business Pricing (Cost Plus) matter?

Cost-plus pricing is simple and consistent, though it ignores what competitors charge for the same value.

What values do I need to enter?

This calculator takes 2 inputs: Unit cost, Markup. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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