Humble Price Point · Estimate
Contribution before fixed costs
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Estimated profit margin at target price
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Profit at planned sales volume
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Difference from current price
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How to read this: Fixed costs are allocated across the planned number of units. Sales fees are modeled as a percentage of selling price, and target margin is profit as a percentage of selling price. The calculation finds a price that covers per-unit variable cost, allocated fixed cost, fees, and the target margin, assuming the planned sales volume is achieved.
Example: With $18 variable cost per unit, $12,000 fixed costs spread over 1,000 planned units, 3% sales fees, and a 25% target margin, the target price is ($18 + $12) ÷ (1 − .03 − .25) = about $41.67 per unit. Change the inputs to explore your assumptions.
What to verify next The numbers above are planning estimates built from the amounts you entered. These are checks for you to complete with local quotes, documents, and qualified professionals — they are not advice, verified quotes, or confirmed terms.
Confirm the real variable cost per unit with supplier or production quotes, not estimates. List all fixed costs for the period and check none are missing from your entries. Get the actual platform, payment-processing, or marketplace fee schedule in writing. Test demand, for example with pre-orders or a small launch, before committing to the planned sales volume. Your next step A price only matters if it clears your costs. Find the break-even point with Humble Break-Even, or work through the break-even worksheet.
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Planning estimate only. The result depends on the costs, planned sales volume, fee rate, and target margin entered. It does not account for demand, taxes, discounts, unsold inventory, or costs not included in the inputs. Not a pricing recommendation or financial, tax, or business advice.