Mr Calcu | Confidently price your products to cover costs, boost profits, and stay tax-compliant—all in one simple step.

Calculate product prices with precision and maximize profits. Boost your strategy and gain peace of mind with accurate, tax-inclusive pricing formulas.

Product Pricing Calculator

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Product Pricing Calculator Guidelines

You’re just a few steps away from accurate, profitable pricing.

How to Use This Calculator

  • Enter your product’s total production cost (materials, labor, overhead).
  • Input your target profit margin as a decimal or percentage (e.g., 25% = 0.25).
  • Specify the applicable tax rate (sales tax or VAT) as a percentage.
  • The calculator applies the formula: Selling Price = Cost × (1 + Margin) × (1 + Tax Rate).
  • Run multiple scenarios to model price sensitivity and cost fluctuation.
  • Use negative margins strategically for promotions or inventory liquidation.

Product Pricing Calculator Description

Advanced Product Pricing Insights

Setting the right price isn’t just about covering your costs—it’s a strategic decision that affects profitability, brand perception, and market share. This calculator is built for entrepreneurs, small businesses, and pricing analysts who want to master cost-based pricing with tax considerations.

Pricing Formula

Let:
  C = Cost of production
  M = Desired profit margin (decimal)
  T = Tax rate (decimal)

Net Price = C × (1 + M)
Selling Price = Net Price × (1 + T)

Therefore:
Selling Price = C × (1 + M) × (1 + T)

Edge Cases Explained

  • Zero Tax Regions: If you're in a no-tax state, set T = 0. Selling Price = Cost × (1 + Margin).
  • Negative Margins: Useful for clearance sales, e.g., -10% = C × 0.90 before tax.
  • Fluctuating Input Costs: Run multiple inputs to model seasonal or supplier-driven variations.
  • Multi-Tier Taxes: Combine rates (e.g., 5% + 8% = 13%) or apply in sequence depending on regional rules.
  • Volume-Based Pricing: Adjust M based on unit ranges (e.g., higher margins for bulk discounts).

Case Studies

1. Artisan Bakery

  • Cost per loaf: $2.50
  • Margin: 40%
  • Tax: 7%
  • Calculation:
Net Price = 2.50 × (1 + 0.40) = 3.50
Final Price = 3.50 × (1 + 0.07) = 3.745 → $3.75

2. SaaS Business

  • Cost per user/month: $10
  • Margin: 60%
  • Tax: 0%
  • Calculation:
Selling Price = 10 × (1 + 0.60) = $16.00

Take the guesswork out of pricing—use this calculator to price smarter and grow your bottom line today.

Example Calculation

CostMarginTax RateSelling Price
$10020%8%$129.60
$5030%5%$71.25
$2000%10%$220.00
$80-10%5%$75.60
$15025%0%$187.50
$12015%13%$155.94

Frequently Asked Questions

The selling price is calculated using: Selling Price = Cost × (1 + Margin) × (1 + Tax Rate). This ensures that taxes are applied after the margin is added.

Yes, you can input any tax rate to reflect regional differences, including combined state and federal taxes.

Set the profit margin to 0. The formula simplifies to: Selling Price = Cost × (1 + Tax Rate), ensuring only tax is applied on top of cost.

Run multiple scenarios with varying cost inputs to establish pricing ranges and protect your margins under cost volatility.

Yes. Input all relevant costs (e.g., hosting, development, support) as your base cost, and proceed as with physical products.

The calculator will compute a lower selling price, useful for modeling intentional losses (e.g., end-of-life product clearance).

Markup is based on cost, while margin is based on revenue. For example, a 50% markup on $10 cost is $15 price, but that’s a 33.3% margin.

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