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Price Calculator

Price Calculator

Enter the production cost and the profit margin in the tool and the calculator will calculate the price of the product.

Cost (C)


Gross Margin (G)


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The market price calculator calculates the selling price of a product by adding the gross profitability to the cost of production of goods. The price strategy is critical in capturing a market or becoming competitive in a marketplace

What is the Price?

The price is the actual cost of production plus the desired gross margin and markup of the product. Price has an important role in purchasing a product or service.

The higher the price, the less ability to buy the best. An increase in price discourages customers from buying it. The purchase price calculator online will calculate the feasible price to settle without disturbing the competition at all.

What is the Pricing Strategy?

Price is the value of a product or a service offered in the marketplace to become competitive and generate a reasonable profit margin. You need to calculate cost and price by taking into account:

  • Production cost
  • Profit margin
  • Market segments 
  • Consumer buying power
  • Market conditions 
  • Competitor Price
  • Trade margins 

The product price calculator is critical to estimate the production cost plus profit margin.

The Effect of Price:

The price of a product or a service affects the following factors:

  • Demand 
  • Brand positioning
  • Psychology of customers 

What are the Types of Prices?

The 8 types of pricing strategies to calculate cost and to calculate the price of a product or a service. 

  1. Penetration pricing
  2. Skimming pricing
  3. High-low pricing
  4. Premium pricing
  5. Psychological pricing
  6. Bundle pricing
  7. Competitive Pricing
  8. Cost-plus pricing

The pricing calculator can be used to settle the various pricing and how to calculate price of a product or a service. 

Practical Example:

Let’s suppose the cost of production of a certain product is $ 500 and the gross profit margin is 70 % of the cost of production of goods. Then how to calculate selling price from cost and margin.


Cost = ₨500

Gross Margin = 70

Gross Margin = 0.7%


\(Selling Price = \frac{\text{Cost}}{\text{1 – Gross Margin}}\)

Selling price = [500/(1-0.7)]

\(Selling Price = \text{1666.67}\)

\(Selling Price = \text{Revenue × Gross Margin}\)

Selling Price = $ 1666.67

Gross Profit = Revenue × Gross Margin

Gross Profit = $ 1666.67 × 0.7

Gross Profit = $ 1166.67

\(Mark Up = \frac{\text{Gross Profit}}{Cost} \text{ × 100}\)

\(Mark Up = \frac{\text{Gross Profit}}{Cost} \text{ × 100}\)

\(Mark Up =  \frac{\text{Gross Profit}}{Cost} \text{ × 100}\)

Mark Up =  $ 233.33

Working of Price Calculator:

The product price calculator does require simple input values to calculate the price of an objective:


  • Enter cost of production and % age of gross profit 
  • Tap calculate


  • Revenue or selling price
  • Gross profit 
  • Mark Up


What’s the Unit Price?

Unit price is the price at which a single quantity of a product is being sold. This can refer to the price per unit of measure, such as the price per pound, ounce, or pin.

What are the 4cs of Market Pricing?

The 4 C’s of Marketing pricing are Customer, Cost, Convenience, and Communication.


From the source of Wikipedia: Price Cost 

From What is the Price?