Pricing Calculator
Add up every cost of one job or product, pick the profit margin you want, and get the price to charge.
Your costs for one sale
Results
- Total cost = materials + (hours × rate) + other expenses + overhead
- Price =
total cost ÷ (1 − margin %) - Markup =
profit ÷ cost, margin =profit ÷ price
Margin
The share of the selling price you keep as profit. A $100 sale with a 30% margin leaves you $30.
Markup
How much you add on top of cost. A 30% markup on a $100 cost makes a $130 price, which is only a 23% margin.
Break-even
The point where sales cover every bill. Below it you lose money; above it each sale adds profit.
How to use the pricing calculator
- Enter your material and supply costs for one job or product.
- Add labor hours and what you pay per hour, including payroll taxes.
- Add other direct costs like fuel, shipping or card fees, plus your overhead per sale.
- Set the profit margin you want. The calculator shows the price to charge, your profit and your markup.
Frequently asked questions
How do I calculate a selling price from a profit margin?
Divide your total cost by one minus the margin. For a $100 cost and a 30% margin, the price is $100 ÷ 0.70 = $142.86, which leaves $42.86 of profit, exactly 30% of the price.
What profit margin should a small business aim for?
It depends on the industry. Many service businesses aim for 20% to 50% gross margin, while retail often runs lower. Start from your costs and the margin you need to cover overhead and pay yourself.
Why not just add 30% to my cost?
Adding 30% to cost is a 30% markup, which is only a 23% margin. Pricing with markup when you meant margin is one of the most common reasons small businesses earn less than they expect.
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