Cost-Plus Pricing Calculator
Calculate the selling price using cost-plus pricing by adding overhead and markup percentage to the unit cost. Determine profit per unit.
How to Use the Cost-Plus Pricing Calculator
- Enter unit production cost.
- Enter overhead percentage allocated to this product.
- Enter desired markup percentage.
- Click Calculate to see selling price and profit per unit.
Use Cases
- •Setting product prices in manufacturing businesses.
- •Ensuring all costs are covered with a profit margin.
- •Preparing pricing for tenders and contracts.
- •Analysing how overhead changes affect product pricing.
Formula
Total cost = unit cost × (1 + overhead%). Price = total cost × (1 + markup%). Profit per unit = price − total cost.
Frequently Asked Questions
What is cost-plus pricing?
Cost-plus pricing sets the selling price by adding a fixed markup percentage to the total production cost including overhead.
What is a typical markup percentage?
Markups vary widely: manufacturing often uses 20–50%, retail 30–100%, while services may use 100–300%.
What costs should be included?
Include direct materials, direct labour, and a portion of overhead costs (rent, utilities, equipment depreciation) allocated to each unit.