Cost-plus pricing calculator with workings
Enter direct costs and overhead rates. You get material, conversion, production and total cost, optionally on to the list price with profit mark-up and discounts.
Result
- Material cost
- £1,200.00
- Conversion cost
- £3,000.00
- Production cost
- £4,200.00
- Total cost
- £4,830.00
- Cash price
- £5,313.00
- Invoice price
- £5,421.43
- List price (net)
- £6,023.81
Workings
- 1Material overhead = £1,000.00 × 20% = £200.00; material cost = £1,000.00 + £200.00 = £1,200.00
- 2Production overhead = £2,000.00 × 50% = £1,000.00; conversion cost = £2,000.00 + £1,000.00 = £3,000.00
- 3Production cost = £1,200.00 + £3,000.00 = £4,200.00
- 4Administration and selling overheads on production cost: £4,200.00 × 10% = £420.00, £4,200.00 × 5% = £210.00
- 5Total cost = £4,200.00 + £420.00 + £210.00 = £4,830.00
- 6Cash price = £4,830.00 + 10% profit = £4,830.00 × 1.1 = £5,313.00
- 7Cash discount from the higher price: invoice price = £5,313.00 / 0.98 = £5,421.43
- 8Trade discount from the list price: list price = £5,421.43 / 0.9 = £6,023.81
The costing scheme
- Material cost = direct materials + material overhead.
- Conversion cost = direct labour + production overhead (+ special costs).
- Production cost = material cost + conversion cost.
- Total cost = production cost + administration and selling overheads (on production cost).
- Prices: add the profit mark-up, then divide by (1 − discount rate) for each discount.
Frequently asked questions
Why divide for discounts?+
The customer deducts the discount from the higher price, so the price before the discount is found by dividing, not by adding a mark-up.