Minimum selling price calculator

How to use

Minimum selling price is the floor where the sale breaks even: what the customer pays covers exactly the product cost, the fee and the fixed fee, with zero profit. Below that line every sale returns less than it cost, and the loss grows with volume.

• Setting the discount limit in a negotiation.
• Checking whether a promotion still pays for itself.
• Comparing your price with the floor before squeezing the margin.

1. Enter the product cost, without fixed overhead.
2. Enter the percentage fee and the fixed fee charged on the sale, if any.
3. The result is the minimum price; anything above it starts to produce profit.

Formula

Minimum price = (cost + fixed fee) ÷ (1 − fee ÷ 100)

Example

Cost of 60 and a 10 % fee: the floor is 66.67. Selling at 66.67 gives zero profit; at 70, you keep 3.00.

Limitations

• Fixed overhead such as rent and salaries is not included — the floor covers the sale only.
• A fee of 100 % or more makes the calculation impossible, and the tool says so.

Frequently asked questions