Pricing calculator, price for profit.
Price = total cost ÷ (1 − target margin). Add your costs and the margin you want; tax goes on top.
- Total cost per sale
- ₦5,500.00
- Profit per sale
- ₦3,666.67
- Markup on cost
- 66.7%
- Price including tax
- ₦9,854.17
- Sales a month to cover fixed costs
- 82
How to use it
Add your costs per sale
What one unit costs you, plus packaging, delivery and payment fees for each sale.
Choose a target margin
The share of the price you want to keep as gross profit, for example 40%.
Add your tax rate
VAT or sales tax for where you sell (7.5% in Nigeria, 16% in Kenya, 20% in the UK).
Check break-even
Add monthly fixed costs to see how many sales a month cover them at that price.
Why you divide instead of adding
Adding 40% to a 5,500 cost gives 7,700, but that is only a 28.6% margin. To keep 40% of the price, divide: 5,500 ÷ 0.6 = 9,167. The calculator uses the divide method, so the margin you type is the margin you get.
Check the price against the market
A price that covers your costs is the floor, not the answer. Compare it with what customers pay for similar products, and if it comes out too high, look at cost (bulk buying, cheaper delivery) before cutting your margin.
Questions, answered.
How do I price a product?
Add up every cost of one sale, choose the margin you need, then divide total cost by (1 − margin). Add VAT or sales tax on top, then sense-check against what competitors charge.
Should the price include VAT?
Show customers the price they will pay. Shops selling to the public usually show VAT-inclusive prices; business-to-business quotes often show the net price plus VAT.
What is break-even?
The number of sales a month whose profit covers your fixed costs. Below it you lose money; above it each sale adds profit.
Can Profynix price my products?
Profynix keeps your costs and sales together, shows margin per product and can suggest price changes for you to approve.
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