🏷️ Pricing
Product Pricing
Calculator
Don't guess your price. Calculate the floor, target, and premium price for any product or service based on your real costs.
🏢 Overhead Allocation Per Unit
Recommended Selling Price
$0
Target margin: 0% · Floor price: $0
Total Cost Per Unit
$0
COGS + overhead allocation
Floor Price (break-even)
$0
Minimum to cover costs
Target Price
$0
At your margin target
vs Competitor
—
Premium or discount
Price → Margin Analysis
At floor price (0% net margin)break-even
At 15% net margin—
At 25% net margin—
At 40% net margin—
At competitor price—
Track your pricing performance
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Frequently Asked Questions
How should I price a new product? ▾
Start with cost-plus pricing: calculate your total cost per unit (COGS + overhead allocation) and add your target margin. This ensures profitability. Then validate against the market: check competitor prices, what customers expect to pay, and the perceived value of your product. If your cost-plus price is higher than the market will bear, you need to reduce costs or reposition. If it's much lower, you may be undercharging — test higher prices.
What overhead should I include in product pricing? ▾
All fixed costs must be recovered through your product prices: rent, salaries, insurance, software, utilities, loan payments, marketing. Divide your total monthly fixed costs by your total monthly units sold to get overhead per unit. This is often called the overhead absorption rate. Many small businesses forget to include overhead in pricing, which is why they appear to make money on every sale but never turn a profit overall.
How do I price services differently from products? ▾
Services are priced based on your target hourly rate (what you need to earn), time required, market rates, and value delivered. Calculate your minimum hourly rate: (annual income target + business expenses) ÷ billable hours per year. Typical small service businesses bill 1,000-1,500 hours per year despite working full-time — the rest is non-billable admin, sales, and marketing time. Value-based pricing (charging based on client outcomes) often yields higher rates than time-based pricing.