Pricing & Margin Analyzer

FINANCE TOOLS

Pricing & Margin Analyzer

Pricing decisions affect far more than revenue. The right price must cover the direct cost of delivering your product or service, contribute toward overhead, and generate an acceptable profit.

The Pricing & Margin Analyzer helps you evaluate your current pricing structure, calculate contribution margin, identify break-even requirements, and determine the price or sales volume needed to achieve your profit goals. You can also test how a 10% increase or decrease in price could affect profitability.

Enter the assumptions for one product, service, or engagement to begin.

Your Assumptions

Enter one representative product, service, or engagement.

Selling price per unit$ Variable cost per unit$Labor, materials, commissions, and other costs that rise with volume. Monthly fixed costs$Overhead attributable to the business, product line, or service. Expected monthly units Target monthly profit$ Target contribution margin%

Contribution margin is the amount remaining after variable costs. It must cover fixed costs before the business earns a profit.

Your Pricing Economics

Monthly results based on your assumptions.

Monthly Revenue$93,750

Operating Profit$14,750

Contribution / Unit$57.00

Contribution Margin45.6%

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WHAT THIS MEANS

The current pricing supports a healthy operating result

Expected monthly operating profit is $14,750, equal to 15.7% of revenue.

Break-even volume492 units

Break-even revenue$61,404

Units needed for target profit755 units

Price needed for target profit$125.33

Price needed for 45.0% contribution margin$123.64

Price Sensitivity

See the effect of changing price while volume and costs remain constant.

Scenario	Unit Price	Contribution Margin	Monthly Revenue	Operating Profit	Break-Even Units

This tool provides directional financial analysis and does not account for taxes, working-capital requirements, capacity constraints, changes in demand, or product-mix effects.