Selling Price Formula Calculator: Maximize Your Profits

Selling Price Calculator

Calculate Your Selling Price with Our Selling Price Formula Calculator

Standard Production Units to Calculate Per Unit Cost (You may keep it zero)

Direct Cost/Unit : (Identify all direct costs associated with the product or service, such as materials, labor, and any other expenses that can be directly attributed to the production or delivery of the product or service.)

Indirect Cost/Unit : (Identify all indirect costs associated with the product or service, such as rent, utilities, insurance, and other overhead expenses.)

Other Cost/Unit : (Any additional cost that has not been considered in Direct or Indirect cost, if none, you may keep it zero.)

Other Cost/Unit : (Any additional cost that has not been considered in Direct or Indirect cost, if none, you may keep it zero.)

Special Marketing or Promotion Cost/Unit : (If none, you may keep it zero.)

Total Units Produced : (You must give a correct input)

Competition Price/Unit : (This input will help you set a competitive price)

Damaged & Return % : (Always use this to avoid a hit in profitability)

Gross Margin % : (Set an initial gross margin, after the result adjust it to match competition)

Production Cost :
Gross Margin % :
Damage Cost/Unit :
Overall Cost :
Selling Price :
**Proposed Selling Price :

Selling Price Formula used for this Calculator

Production Cost = Direct Cost + Indirect Cost + Other Cost
Targeted Margin = Margin Percent
Cost of Damaged Units = (Damaged Percent / 100 * Total Units) * Production Cost / Total Units
Overall Cost = Production Cost + Cost of Damaged Units + Marketing Cost
Selling Price = Overall Cost * (Margin Percent / 100) + Overall Cost
Proposed Selling Price = If derived Selling Price < Competitor Price then the result is “Competitor Price” else derived “Selling Price”

**In case “Proposed Selling Price” is higher than the competition, it is suggested to adjust “Gross Margin” to bring the Proposed Selling Price equal to competition or a little higher/lesser to remain competative.
**When the “Proposed Selling Price” is equal to competition price, that means your Selling Price is calculated lower than competition, you have opportunity to earn extra margin.