Relative Price Calculator

Calculate the relative price of a product based on various factors such as base price, cost, and desired profit margin.

Input Parameters

Calculation Results

Calculation Formula

Relative Price = (Variable Cost + Fixed Cost) × (1 + Desired Profit Margin / 100)

Where:
- Base Price: The initial price of the product
- Variable Cost: Costs that vary with production volume
- Fixed Cost: Costs that remain constant regardless of production volume
- Desired Profit Margin: The percentage of profit you want to achieve

Total Cost:

$0.00

Relative Price:

$0.00

Profit per Unit:

$0.00

Relative Price Calculator Calculator Usage Guide

Learn how to use the Relative Price Calculator calculator and its working principles

How to Use the Calculator

  1. Enter your base price (the initial price of the product)
  2. Input your variable costs (costs that change with production volume)
  3. Specify your fixed costs (costs that remain constant regardless of production volume)
  4. Set your desired profit margin percentage
  5. Click the "Calculate" button to see the results

Understanding the Results

  • Total Cost: The sum of your variable and fixed costs
  • Relative Price: The price calculated based on your costs and desired profit margin
  • Profit per Unit: The profit you would make on each unit sold at the relative price

Principles of the Calculation

The calculator uses the formula: Relative Price = (Variable Cost + Fixed Cost) × (1 + Desired Profit Margin / 100). This formula ensures that your price covers all costs and provides the desired profit margin.

Example

If your base price is $50, variable costs are $20, fixed costs are $10, and you want a 30% profit margin, the calculator will determine that your relative price should be $56.67 to achieve your desired profit.