Current assumptions
- Active cost basis
- Ingredient/material + labor + overhead per item
- Total batch cost (USD)
- No value entered
- Sellable batch yield
- No value entered
- Derived cost per sellable unit (USD)
- Unavailable
- Ingredient cost per item (USD)
- $2.75 USD
- Labor cost per item (USD)
- $1.50 USD
- Overhead cost per item (USD)
- $0.50 USD
- Payment-fee rate (%)
- 0.0%
- Target profit margin (%)
- 40.0%
- Target markup (%)
- 80.0%
- Order quantity (sellable items)
- 1 item
- Target profit amount (USD)
- $100.00 USD
- Scenario 1 selling price (USD)
- $10.00 USD
- Shared base cost (USD)
- $4.75
- Scenario 2 selling price (USD)
- $12.00 USD
- Shared base cost (USD)
- $4.75
Suggested price estimates
- Suggested selling price at target margin (USD)
- $7.92
- Base cost (USD)
- $4.75
- Estimated payment fee (USD)
- $0.00
- Total per-item cost (USD)
- $4.75
- Estimated profit per item (USD)
- $3.17
- Estimated margin (%)
- 40.0%
- Estimated markup (%)
- 66.7%
- Target markup
- 80.0%
- Suggested selling price at target markup (USD)
- $8.55
- Markup-based estimated payment fee (USD)
- $0.00
- Markup-based estimated profit (USD)
- $3.80
Notes and definitions
Sample starting values allocate the vanilla cake-box example to $2.75 ingredients and materials (including packaging), $1.50 labor, and $0.50 overhead per item. The target margin starts at 40% and the fee at 0%; replace every value with your own.
The starting scenario prices, $10.00 and $12.00, are sample values; change them to compare your own.
Each scenario uses its selected shared or custom base cost and the shared payment-fee rate. Margin = estimated profit ÷ selling price. Markup = estimated profit ÷ base cost. Payment fees reduce profit but stay separate from the cost denominator. Batch cost per unit is rounded to cents before it is used in the estimate.
The markup price uses base cost × (1 + target markup) ÷ (1 − percentage fee rate). The 80% starting markup is an illustrative workbook example, not a recommended target.
Order totals multiply the selected per-item base cost and payment fee by order quantity. Batch yield divides the total batch cost into a per-unit base cost; order quantity is the number of sellable units in the order. Confirm your recipe yield, labor, overhead, taxes, fixed charges, channel fees, and local pricing before making a business decision.
This estimate uses the costs entered and excludes fixed costs that are not modeled here.