Pricing calculators

There are a range of ways to calculate your prices. Use the following interactive calculators to help you work out your prices. Once you have read and understood the examples, you can type the numbers that are relevant to your business into the calculators to see your prices.

Mark-up

  • Take the cost price and add the same percentage mark-up to all items (e.g. 50%). Talk to your suppliers, competitors or relevant business and industry associations to find an industry standard.
  • Useful when you have multiple products at different price points and other costing methods are too complex.
  • Adjust the mark-up depending on your strategy. For example, if you are using penetration pricing, you would use a lower mark-up than your competitors.
Mark-up

Costing

  • Calculate all of your fixed overheads. Add this to the cost of sales (the variable cost to sell each product or service). Then add the money you would like to make from each sale (your desired profit).
  • This is the best method to use to make sure you are maximising your profit, although it can be time-consuming.
  • You must have accurate and up-to-date records so you know all of your costs and you do not have to guess.
Costing

Charge per hour

  • Useful when you are delivering a service rather than a product.
  • It is easy to overestimate the number of hours and days you have available to work. Take all of your leave into account.

Calculate charge per hour for services

Step 1

Calculate the maximum number of hours available for you to work in a year.

Step 2

Deduct public holidays, sick and annual leave off your maximum number of work hours.

Step 3

Calculate your total turnover required per year.

Also consider...