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How to use the result
The calculator solves for a price that leaves the selected margin after direct cost, labour, allocated overhead, and a percentage fee. It does not prove customers will pay that price.
- Labour rate should include more than take-home pay when the business bears payroll, benefits, downtime, and administration.
- Allocate overhead using a realistic sales volume.
- Add shipping, returns, warranty, rework, discounts, and tax handling where relevant.
- Compare the resulting price with customer value and competing alternatives.