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Pricing Calculator

Enter what it costs you to serve one customer, your monthly overhead and the margin you want. You get a minimum price, a target price and what that means monthly.

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Short answer

Pricing Calculator: what it does

Your price has to cover the cost of serving one customer, plus their share of your fixed overhead, plus the profit margin you need. A price below the first number loses money on every sale; a price below the second loses money on the business.

Last updated 3 August 2026

Worked example

Here's one we ran earlier.

£9 cost per customer · £450 monthly overhead · 100 customers · 40% target margin

Minimum price — £13.50
Break-even
£9 to serve the customer plus £4.50 of overhead (£450 ÷ 100). Below this, every sale loses money or the fixed costs don't get covered.
Target price — £22.50
40% margin
£13.50 divided by 0.6 to leave a 40% gross margin. This is the price that covers costs and leaves profit to reinvest.
Monthly revenue — £2,250
At target
100 customers at £22.50. After £900 in serving costs and £450 overhead, that's £900 profit before tax and any other spending.

How it works

Three steps, no account.

Step 1

Count every cost that scales

Cost per customer includes the things you only pay because you have customers: hosting, support time, materials, payment fees. Missing one makes your price look lower than it is.

Step 2

Spread overhead honestly

Divide fixed costs by the number of customers you actually expect, not the number you hope for. Pricing for a future scale that doesn't exist yet is how underfunded businesses run out of cash.

Step 3

Check the margin against reality

If the target price is higher than customers are paying competitors, either your cost structure is too high or your value proposition isn't specific enough. Both are fixable, but only if you know the number.

Questions

Common questions.

Should I include my salary in overhead?

Yes, if you need to pay yourself to keep working on it. A price that doesn't cover the founder's cost of living is a hobby, not a business.

What profit margin should I target?

Software products often aim for 70–85% gross margin after direct costs. Agencies and physical products are lower, typically 30–50%. If your calculated price feels too high, reduce costs or target a more valuable customer before you cut margin.

How do I know what customers will pay?

Look at what they already pay for the current way they solve the problem, not what competitors charge for the same category. A salon owner already loses money to no-shows; that's the price anchor, not the booking software market.

Should I charge less at the start?

Only if you get something in return, such as a case study, a testimonial, or feedback. A lower price without a clear exchange just trains early customers to expect the lower price.