Cost-Plus Pricing Calculator
Result
Cost-Plus Pricing Calculator — free online calculator.
Formula
- Treats desired profit margin as gross margin on selling price, not markup on cost. Margin must be less than 100%.
- The main inputs are Direct Material Cost, Direct Labor Cost, Overhead Cost, Desired Profit Margin. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Cost-Plus Pricing
- Direct Material Cost: 500 PKR
- Direct Labor Cost: 200 PKR
- Overhead Cost: 100 PKR
- Desired Profit Margin: 30
500 + 200 + 100 = 800 PKR cost; at a 30% gross margin, price = 1,142.86 PKR and profit = 342.86 PKR.
Sample result: Calculating…
Frequently asked questions
What does the Cost-Plus Pricing calculate?
Cost-Plus Pricing Calculator — free online calculator.
Which values should I enter?
Enter Direct Material Cost, Direct Labor Cost, Overhead Cost, Desired Profit Margin using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Cost = materials + labor + overhead; selling price = cost / (1 − desired gross margin/100)..
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.