Selling Price
What you charge for the product or service you're modelling.
All resources
Free Excel Tool
Know what your pricing actually means for your margins
Use the free Vertex Pricing & Margin Calculator to understand your current pricing economics, calculate break-even performance and test how changes in price, cost and volume could affect your business.
Microsoft Excel • Free download • No signup required
Why it matters
A price change can affect more than revenue
Changing your price affects revenue, contribution margin, break-even volume and the amount each sale contributes toward covering the rest of your business costs.
The Pricing & Margin Calculator helps you model those relationships before making a pricing decision.
Current economics
Start with the economics of what you sell
See how much each product or service contributes after its variable costs, and how that contribution helps cover the fixed costs of running the business.
Variable Costs
The costs that move directly with each additional unit sold.
Contribution per Unit
What's left from each sale after its variable costs.
Fixed Costs
The costs of running the business that don't move with volume.
Estimated Operating Contribution
What total contribution leaves after covering the fixed costs you've entered.
Contribution per UnitContribution Margin %Break-Even UnitsMonthly ContributionEstimated Operating Contribution
Target price
Work backwards from your own financial targets
Enter your own target contribution margin or monthly operating contribution and see the price mathematically required to reach it based on the assumptions you've entered.
Your targets. Your assumptions. No generic industry benchmarks.
The calculator does not recommend a particular price. It shows the price implied by the targets and assumptions you enter.
Scenario analysis
Stress-test pricing before you change it
Price Increase
See how a higher price could affect contribution if volume remains unchanged.
Price Reduction
Calculate how much additional volume would mathematically be required to preserve contribution.
Cost Increase
See how rising variable costs could affect contribution margin and operating economics.
Volume Change
Understand how different sales volumes affect contribution and break-even performance.
Scenario calculations illustrate mathematical relationships and do not predict how customer demand will respond to a price change.
Product & service mix
Not every offer contributes the same way
Compare up to six products or services based on revenue, contribution per unit, contribution margin and total monthly contribution.
The comparison helps you distinguish between:
- Highest revenue
- Highest contribution
- Highest contribution margin
- Revenue share
- Contribution share
A higher margin percentage does not automatically make one offer better than another. Volume and total contribution matter too.
See your pricing economics in one place
Review price, contribution, margin, break-even performance, scenarios and offer mix in a single structured workbook.
Pricing & Margin DashboardBased on assumptions entered
Current Price
Contribution per Unit
Contribution Margin
Break-Even Units
Product / service contribution mix
Offer ARevenue / contribution
Offer BRevenue / contribution
Offer CRevenue / contribution
Offer DRevenue / contribution
Scenario comparison
Price increase
Price reduction
Cost increase
Volume change
Break-even
Units required at each price
Illustrative dashboard layout
What's included
What's inside the calculator
Start Here
Instructions and guidance for using the calculator.
Pricing Inputs
Enter your selling price, expected volume, variable costs, fixed costs and user-defined targets.
Current Economics
Understand contribution, margin, break-even performance and estimated operating contribution.
Target Price
Calculate prices associated with your own margin or operating-contribution targets.
Scenario Analysis
Test price, cost and volume changes.
Product / Service Mix
Compare the economics of multiple offers.
Executive Dashboard
Review key pricing and margin insights in one place.
How it works
Enter Your Numbers
Replace the fictional example with your own pricing, costs and expected sales volume.
Review Your Economics
See contribution margin, break-even volume and estimated operating contribution.
Test Different Decisions
Model changes to pricing, costs and volume.
Compare Your Offers
See which products or services generate revenue and contribution across your mix.
Built for owner-led businesses
The calculator is most useful for businesses with identifiable pricing and cost structures, such as:
- Professional service firms
- Clinics and healthcare practices
- Agencies
- Trades and contractors
- Consultants
- Recurring-service businesses
- Other owner-led businesses with identifiable pricing and cost structures
Business models differ. How well the calculator fits your business depends on how clearly your pricing and variable costs can be identified.
The basics
Margin and markup aren't the same thing
Markup measures profit relative to cost, while margin measures profit or contribution relative to selling price. Confusing the two can lead to very different pricing calculations.
Mathematical example
- Cost
- $60
- Selling Price
- $100
- Markup
- 66.7%
- Margin
- 40%
This is a mathematical example only, not a recommended margin.
Understand the numbers behind your pricing
Download the free Excel calculator and use your own pricing, costs and assumptions to explore how different decisions affect your margins and contribution.
Free Excel workbook • No signup required
Want better visibility into your pricing and profitability?
Vertex Strategic Finance helps owner-led businesses understand the financial drivers behind pricing, profitability, cash flow and business decisions.
Book a Complimentary ConversationThis resource is provided for general informational and educational purposes only. It is not accounting, tax, legal, investment or pricing advice and does not constitute an assurance engagement. Results depend on the assumptions and information entered. Consider your business circumstances and seek professional advice where appropriate.