Calculate the optimal selling price per unit needed to cover your costs and achieve your target profit based on fixed costs, variable costs, and expected sales volume. This cost-plus pricing tool helps ensure your business remains profitable.

What you'll enter

• Fixed costs per month (CAD) - rent, salaries, insurance, etc.
• Variable cost per unit (CAD) - materials, labor, shipping per item
• Target profit per month (CAD) - your desired monthly profit goal
• Expected sales volume (units per month) - how many units you plan to sell

What you'll get

• Recommended price per unit (CAD) to achieve your target profit
• Contribution margin per unit (price minus variable cost)
• Estimated monthly profit based on your inputs
• Breakdown showing total monthly revenue, fixed costs, and variable costs
• Real-time updates as you adjust any input values

Notes

• Formula: Price = Variable cost + (Fixed costs + Target profit) ÷ Sales volume
• Fixed costs remain constant regardless of production volume (e.g., rent, insurance, base salaries).
• Variable costs change with production volume (e.g., raw materials, packaging, per-unit labor).
• Contribution margin shows how much each sale contributes to covering fixed costs and generating profit.
• This is a cost-plus pricing model - it ensures you cover all costs and hit profit targets, but doesn't account for market demand or competitor pricing.
• Consider market research and competitor prices when finalizing your pricing strategy - customers must perceive value at your calculated price.
• Higher sales volumes allow you to spread fixed costs over more units, resulting in lower per-unit prices.
• All amounts are in Canadian dollars (CAD) and represent monthly figures.
• The calculator validates that sales volume is greater than zero to prevent division errors.

↓ Scroll down to the calculator to enter your numbers.