Business Finance Calculators
Pricing Strategy Calculator
Compare cost-plus, competitor-based and value-based prices for a product, with the margin each would earn.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Pricing a new product or service
- Reviewing prices that have not changed for years
- Preparing for a price increase
- Explaining a pricing recommendation
About this tool
What the Pricing Strategy Calculator does
There are three common anchors for a price: your costs, your competitors’ prices and the value customers receive. This calculator produces a price from each, alongside the margin it earns, so you can see the range of defensible prices before choosing one.
Formula
- Cost-plus price = unit cost × (1 + markup)
- Competitor price = competitor price × (1 + positioning)
- Value-based price = cost + (customer value − cost) × share captured
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Unit cost | $25.00 |
| Cost-plus markup | 60% |
| Competitor price | $45.00 |
| Positioning against competitor | 5% |
| Value to the customer | $80.00 |
| Share of value you capture | 50% |
| Result | Value |
|---|---|
| Value-based price | $52.50 |
| Competitor-based price | $47.25 |
| Cost-plus price | $40.00 |
How to read the result
Cost sets the floor and customer value sets the ceiling. Competitor prices tell you where in that range buyers will compare you.
Value-based pricing needs evidence of value, such as time saved or revenue gained. Gather it from customers before relying on it.
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If you would rather someone did this properly for you, we offer Web Design Services and Website Development, SEO Services: Search Engine Optimization, AI Automation Agency.
Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Setting a price based on the value the customer receives rather than on your costs.
Adding a fixed markup to the cost of producing a product.
Most businesses blend them: cost sets the minimum, value sets the maximum and competitors shape where you sit between them.
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