Free finance template
Pricing calculator
A price from cost and target margin, rounded to .99, with demand that falls as the price rises.
It opens with this template loaded and runs in your browser. You don't need an account to use it; a free account saves your work and exports it.
The job it does
When you set or change a price: the margin, the volume and the profit at each price. It comes with its own checks, so after you change it you can see at a glance that it still does the job.
What's inside
This is the template exactly as the Finance Lab opens it, read-only. Open it to run it, change it and export it.
- 1 sheet
- 8 formulas
- Exports to Excel, CSV and PDF
A price for a margin is cost ÷ (1 − margin): a 35% margin on $5.40 is $8.31, not $7.29. Elasticity says how fast demand falls: at 1.8, a 10% higher price sells about 16% fewer bottles. The best price maximises gross profit, not revenue.
- No formula errors anywhere
- B10 is a formula, not a typed number
- B13 is a formula, not a typed number
- B11 is a formula, not a typed number
| Number | Value |
|---|---|
| Our price | $8.99 |
| Gross profit a month | $15,078 |
| Bottles a month | 4,200 |
- Target gross margin: 35% (from 0.1 to 0.6)
- Price elasticity: 1.8 (from 0.5 to 3)
- Cost per bottle: $5.40 (from 3 to 8)
| Row | A | B |
|---|---|---|
| 1 | Price a private-label olive oil (1 litre) | |
| 2 | Cost per bottle | $5.40 |
| 3 | Target gross margin | 35% |
| 4 | Competitor price | $8.99 |
| 5 | Bottles a month at the competitor's price | 4,200 |
| 6 | Price elasticity | 1.8 |
| 8 | Price for the target margin | $8.31 (formula =B2/(1-B3)) |
| 9 | Price ending in .99 | $8.99 (formula =ROUNDUP(B8,0)-0.01) |
| 10 | Our price | $8.99 (formula =B9) |
| 11 | Bottles a month at our price | 4,200 (formula =ROUND(B5*(B10/B4)^(-B6),0)) |
| 12 | Revenue a month | $37,758 (formula =B10*B11) |
| 13 | Gross profit a month | $15,078 (formula =(B10-B2)*B11) |
| 14 | Gross margin at our price | 39.9% (formula =(B10-B2)/B10) |
| 15 | Cheaper than the competitor? | no (formula =IF(B10<B4,"yes","no")) |
The lesson behind it
Learn why it works, with a podcast and a quiz for each lesson.
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