Cost-Plus Pricing Calculator
Set your selling price by adding a markup percentage to total cost — and see the resulting gross margin automatically.
Enter Your Numbers
How this calculator works
Cost-plus pricing is the most straightforward pricing method: add up all your costs, then add a markup percentage. The key insight: markup on cost ≠ gross margin percentage. A 40% markup produces a 28.6% gross margin. This calculator shows both numbers clearly and models monthly profitability.
Selling price = Total cost × (1 + markup%) | Gross margin = (Price − Cost) ÷ Price × 100 | Note: markup is on cost; margin is on selling price — they are different.
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Markup ≠ margin
A 50% markup gives 33.3% gross margin, not 50%. Many business owners confuse this and under-price severely.
Value-based beats cost-plus
Cost-plus sets a floor, not a ceiling. If customers perceive much higher value, charge more — don't leave money on the table.
Review pricing quarterly
If your input costs rise 10%, your selling price must rise accordingly or margin shrinks. Build price review cycles into your calendar.
Frequently Asked Questions
A 50% markup gives 33.3% gross margin, not 50%. Many business owners confuse this and under-price severely.
Cost-plus sets a floor, not a ceiling. If customers perceive much higher value, charge more — don't leave money on the table.
If your input costs rise 10%, your selling price must rise accordingly or margin shrinks. Build price review cycles into your calendar.