Free calculator: pricing and margin
Pricing and margin calculator
Work backward from the cost to deliver and the margin you need, then protect that margin when a customer discount is part of the sale.
Inputs and formula
- Cost basis = delivery cost + labor cost + allocated overhead.
- Minimum viable price = cost basis ÷ (1 − desired margin).
- Target list price = minimum viable price ÷ (1 − discount). The realized price is list price after discount.
Worked example
With $18 delivery cost, $12 labor, $5 overhead, a 60% desired margin, and a 15% discount, the minimum viable price is $87.50 and the target list price is about $102.94.
Planning estimate caveat
The result is a gross-margin planning estimate. Add payment fees, returns, taxes, channel commissions, support, and volume-based costs when they belong in the sale economics.
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