Act on the result
Use the floor as a negotiation boundary and document which costs may legitimately change for a specific quote.
Educational only: Business decision support, not accounting, tax or legal advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Owners setting a negotiation or list-price floor from a complete cost stack.
Outputs
Price floor, contribution, margin, markup and a below-floor warning.
Start here
Enter each avoidable and allocated cost once, then set the fee and margin retained from the price.
Use a different tool when: Do not use this to set a wholesale price that protects supplier and reseller margins; use Wholesale vs Retail Channel Margin Planner for that decision. Use this tool to protect a negotiation floor.
Price & margin
Minimum Profitable Price: price floor
Price floor, contribution, margin, markup and a below-floor warning.
Amounts use the same currency as your inputs. No currency conversion is performed.
Minimum Profitable Price
Set a floor that covers costs, variable fees and target margin.
Your numbers stay in this browser
Direct cost per unit.
Per-unit fulfilment cost.
Fixed cost deliberately allocated per unit.
Fixed transaction fee per unit.
Fee retained as a share of price.
Contribution retained from price.
Current or negotiated price to test.
Decision result
Every result is derived by the registered pricing engine.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
- Minimum profitable price
- 81.94
- Contribution Ex Tax
- 20.49
- Margin
- 25%
- Markup
- 34.7%
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current scenario81.94Baseline
Lower Target margin80.55-1.40
Higher Target margin83.391.45
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Minimum profitable price
Price Floor Ex Tax
cost stack ÷ (1 − percentage fee − target margin)81.94 , ex taxResult81.94
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Minimum Profitable Price Planner formulas →Inputs used by these formula steps
- Price Floor Ex TaxUnit Cost Ex Tax
- 45
- Price Floor Ex TaxShipping And Fulfilment Ex Tax
- 8
- Price Floor Ex TaxAllocated Fixed Cost Ex Tax
- 5
- Price Floor Ex TaxFixed Variable Fee Per Unit Ex Tax
- 1
- Price Floor Ex TaxPercentage Variable Fee Rate
- 0.03
- Price Floor Ex TaxTarget Margin
- 0.25
- Price Floor Ex TaxComparison Price Ex Tax
- 75
Contribution Ex Tax
Contribution Ex Tax
price floor × (1 − percentage fee) − cost stack20.49 , ex taxResult20.49
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Minimum Profitable Price Planner formulas →Inputs used by these formula steps
- Contribution Ex TaxUnit Cost Ex Tax
- 45
- Contribution Ex TaxShipping And Fulfilment Ex Tax
- 8
- Contribution Ex TaxAllocated Fixed Cost Ex Tax
- 5
- Contribution Ex TaxFixed Variable Fee Per Unit Ex Tax
- 1
- Contribution Ex TaxPercentage Variable Fee Rate
- 0.03
- Contribution Ex TaxTarget Margin
- 0.25
- Contribution Ex TaxComparison Price Ex Tax
- 75
Margin
Margin
contribution ÷ price floor25%Result25%
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Minimum Profitable Price Planner formulas →Inputs used by these formula steps
- MarginUnit Cost Ex Tax
- 45
- MarginShipping And Fulfilment Ex Tax
- 8
- MarginAllocated Fixed Cost Ex Tax
- 5
- MarginFixed Variable Fee Per Unit Ex Tax
- 1
- MarginPercentage Variable Fee Rate
- 0.03
- MarginTarget Margin
- 0.25
- MarginComparison Price Ex Tax
- 75
Markup
Markup
contribution ÷ cost stack34.72%Result34.7%
Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.
Minimum Profitable Price Planner formulas →Inputs used by these formula steps
- MarkupUnit Cost Ex Tax
- 45
- MarkupShipping And Fulfilment Ex Tax
- 8
- MarkupAllocated Fixed Cost Ex Tax
- 5
- MarkupFixed Variable Fee Per Unit Ex Tax
- 1
- MarkupPercentage Variable Fee Rate
- 0.03
- MarkupTarget Margin
- 0.25
- MarkupComparison Price Ex Tax
- 75
Inputs used
- Unit cost
- 45
- Shipping and fulfilment
- 8
- Allocated fixed cost
- 5
- Fixed fee
- 1
- Percentage fee
- 0.03
- Target margin
- 0.25
- Comparison price
- 75
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| allocatedFixedCostExTax | Fixed cost deliberately allocated per unit. | currency units/product unit, ex tax | 0 to 10000000 | Required | 5 |
| comparisonPriceExTax | Current or negotiated price to test. | currency units/product unit, ex tax | 0 to 10000000 | Required | 75 |
| fixedVariableFeePerUnitExTax | Fixed transaction fee per unit. | currency units/product unit, ex tax | 0 to 10000000 | Required | 1 |
| percentageVariableFeeRate | Fee retained as a share of price. | proportion of selling price charged as variable fee | 0 to 0.99 | Required | 0.03 |
| shippingAndFulfilmentExTax | Per-unit fulfilment cost. | currency units/product unit, ex tax | 0 to 10000000 | Required | 8 |
| targetMargin | Contribution retained from price. | proportion of selling price retained as contribution | 0 to 0.99 | Required | 0.25 |
| unitCostExTax | Direct cost per unit. | currency units/product unit, ex tax | 0 to 10000000 | Required | 45 |
Minimum Profitable Price: price floor
The price floor is the lowest price that covers the entered cost stack, fees and retained-margin requirement.
Formula summary
- Primary formula
- price floor = cost stack ÷ (1 − fee rate − target margin)
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Check that allocated overhead and percentage fees are complete before relying on the floor.
When this estimate can be misleading
- Results depend on the accuracy and consistent basis of your inputs.
- The planner does not predict demand, competitor behaviour or supplier terms.
- Use the result as educational business decision support, not accounting, tax or legal advice.
- The price floor is the lowest price that covers the entered cost stack, fees and retained-margin requirement.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- How Much Price Flexibility Can a Sales Team Have?
Derive delegated price authority from a documented floor, contribution impact, approval evidence and explicit escalation rules.
Read guide
Frequently asked questions
How do I protect a negotiation floor?
Use the floor as a negotiation boundary and document which costs may legitimately change for a specific quote.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.