Free Product Pricing Calculator

The most comprehensive tool in this silo. Enter your material cost, labour (hours × rate), overhead per unit and target profit margin — the calculator combines everything into a suggested selling price with a visual cost breakdown.

1. Materials
2. Labour

Labour cost: $60.00

3. Overhead
4. Target margin

Results

Materials$25.00
Labour$60.00
Overhead$10.00
Total cost$95.00
Profit / unit$95.00
Suggested selling price$190.00

Cost breakdown

  • Materials13.2%
  • Labour31.6%
  • Overhead5.3%
  • Profit50.0%

About the Product Pricing Calculator

How the price is built

Total Cost = Materials + (Labour Hours × Hourly Rate) + Overhead. Selling Price = Total Cost / (1 − Target Margin / 100). Dividing by (1 − margin) — not multiplying by (1 + margin) — is what produces the correct margin instead of a mis-scaled markup.

Don't skip overhead

Overhead per unit spreads your fixed costs (rent, tools, insurance, software) across your expected production. If you make 200 units a month and your fixed costs are $2,000, overhead per unit is $10. Skipping this step is why so many handmade sellers underprice themselves.

Labour is a real cost, even for founders

If you don't include your own labour at a realistic hourly rate, the 'profit' you're calculating is actually just your unpaid wage. Price the product as if you had to hire someone to make it — that's when the business starts working.

Frequently asked questions

Related Pricing Tools

Other free tools in the pricing & profitability silo.