Pricing Strategy Calculator
Compare cost-plus, value-based, and revenue-based pricing strategies side by side. Find the optimal price for your product based on costs, competitors, and revenue goals.
Pricing Strategy Calculator
Compare cost plus, value based, and revenue based pricing
Cost plus = cost / (1 - margin%). Value based = competitor price × 1.10 (10% premium). Revenue based = target revenue / units. Choose the strategy that best fits your market position and goals.
Frequently Asked Questions
What is cost-plus pricing?+
Cost-plus = Cost / (1 - Desired Margin%). If your product costs $10 and you want 50% margin, price = $10 / (1 - 0.50) = $20. Simple and guaranteed margin, but ignores competitor pricing and perceived value. Good for commodities and commodity-like products.
What is value-based pricing?+
Value-based pricing sets price based on what the market will pay, not your cost. Start with competitor pricing and add 10-20% premium for differentiation. Works best for unique products, strong brands, and B2B services where value is measurable.
Which pricing strategy is best?+
Most businesses use a hybrid. Start with cost-plus as your floor (never sell below cost). Set revenue-based targets for volume goals. Use value-based pricing for premium offerings. Test different price points — a 10% price increase with 5% volume loss = higher total profit.
What is cost-plus pricing?
Cost-plus = Cost / (1 - Desired Margin%). If your product costs $10 and you want 50% margin, price = $10 / (1 - 0.50) = $20. Simple and guaranteed margin, but ignores competitor pricing and perceived value. Good for commodities and commodity-like products.