Product Pricing Calculator

For makers, small product businesses, and resellers. Enter your costs and target margin — we'll give you a fair retail and wholesale price.

Quick answer

To price a product, add your total costs (materials, labor, packaging, overhead) and divide by (1 minus your profit margin as a decimal). Example: $20 in costs ÷ (1 − 0.30) = $28.57 retail at a 30% margin.

Your numbers

Edit any field — results update as you type.

Materials cost per unit

Labor hours per unit

hrs

Your hourly rate

Packaging cost

Overhead per unit

Desired profit margin

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Suggested retail price

$56.15

$19.65 profit per sale at a 35.0% margin.

Total cost

$36.50

Wholesale price

$28.08

Markup

54%

Ask AI to explain this price →

Where the price goes

Each bar shows how much of the retail price covers each cost — the rest is profit.

Materials

$8.00

Labor

$25.00

Packaging

$1.50

Overhead

$2.00

Profit

$19.65

Your margin is in a healthy range for most retail products.

Want the full picture? The Real Profit Pricing Workbook walks you through your time, every fee and each sales channel, step by step.

See the workbook: $19 launch price until December 31, 2026 (then $27) →

30-day money-back guarantee. If it's not for you, email me within 30 days for a full refund, no questions asked. · First edition in English

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How this calculator works

Retail price = total cost ÷ (1 − margin). Total cost adds materials, labor, packaging, and overhead. Wholesale defaults to 50% of retail, the standard for buy-back from stockists. Markup is profit divided by cost, not by price — that's why a 50% markup is only a 33% margin.

Tips for product pricing

Always pay yourself for your time. Free labor is the #1 reason small businesses fail to grow.
Track real overhead for a month — most makers underestimate it by 2–3×.
Set wholesale at 50% of retail so stockists can mark up to your retail price without undercutting you.
Re-price every 6 months. Materials, shipping, and your skill all change.

Frequently asked

Yes — it totals your unit cost from materials, labor, packaging and overhead, then calculates prices from your target margin. See our margin-vs-markup guide.

Add up materials, labor (hours × hourly rate), packaging, and a fair share of overhead. Divide that total cost by (1 minus your desired profit margin as a decimal). For a 30% margin: $20 cost ÷ (1 - 0.30) = $28.57 retail.

20–40% is common for retail products. Handmade and luxury goods often target 50%+. Less than 20% leaves little room for discounts, returns, or growth.

Yes. Always pay yourself an hourly wage and treat it as a real cost — otherwise you're subsidizing the business with free labor and your prices will be too low.

Margin = profit ÷ price. Markup = profit ÷ cost. A 50% markup is only a 33% margin. They are not the same number.