Product pricing calculator
Calculate how much to charge for your products
How to use this calculator
Enter your product details, materials, and costs to calculate your breakeven price and profit margins. All figures should be entered excluding VAT.
1. Product details: Enter your product name and the batch size (how many you make at once).
2. Materials & components: List all materials and components used in your product.
3. Direct costs: Include any additional costs directly related to making this product.
4. Fixed overheads: Enter the portion of your fixed costs this product should cover.
5. Pricing: The calculator will show your breakeven price, then you can enter your selling price to see profit margins.
1. Product details
Start by naming your product and specifying how many you typically make in one batch. This helps calculate your per-unit costs accurately.
Number of units you make in one production run
2. Materials & components
List all materials and components used in your product. For each item, enter the quantity used per batch and the cost. The calculator will work out the cost per unit based on your batch size.
3. Direct costs
Include any additional costs directly related to making this product. Examples include labour costs, equipment usage, packaging, shipping supplies, and any other costs that wouldn't exist if you weren't making this specific product.
4. Fixed overheads
Overheads are your ongoing business costs that aren't directly tied to making a specific product. These include rent, utilities, insurance, marketing, professional fees, and general administrative expenses. Start by adding your monthly overheads together (see the boxout for some examples). It’s important to include all overheads, or you risk pricing your product too low. You then need to decide what portion of these costs this product should cover.
How to calculate: There are several approaches to allocating overheads for products:
- Per-unit allocation: Divide your monthly overhead by your total monthly production.
- Revenue-based: If this product represents 20% of your revenue, allocate 20% of your overheads.
- Time-based: If this product takes 15% of your production time, allocate 15% of your overheads.
Total overhead costs allocated to this batch
Overhead examples
- Rent/workspace costs
- Utilities (electricity, internet)
- Insurance
- Marketing & advertising
- Professional memberships
- Website & online services
- Administrative expenses
5. Breakeven analysis
This section shows you the minimum price you need to charge to cover your costs. The direct cost breakeven only covers materials and direct costs, while the total breakeven includes your overhead allocation. You should always price your products above the total breakeven point to ensure profitability.
Total direct costs
£0.00
Materials + direct costs
Total costs (incl. overheads)
£0.00
Direct costs + overheads
Direct cost per unit
£0.00
Minimum price to cover direct costs
Total breakeven price
£0.00
Minimum price to cover all costs
6. Profit analysis
Enter your intended selling price (excluding VAT) to see how much profit you'll make per unit and for the entire batch. The profit margin shows what percentage of your selling price is profit. For physical products, healthy profit margins typically range from 30% to 50%, depending on your industry and competition.
The price you'll charge for each unit, before adding VAT
Selling price × batch size
Profit per unit
£0.00
Selling price - total cost per unit
Batch profit
£0.00
Profit per unit × batch size
Profit margin
0%
(Profit per unit ÷ selling price) × 100
Return on investment (ROI)
0%
(Batch profit ÷ total costs) × 100
Next steps:
- Read our essential guide to pricing.
- Read ten FAQs on how to price goods and services.
© Start Up Donut. All calculations are estimates and should be used as a guide only.
Product Pricing Summary
Prepared by Start Up Donut Calculator