Free tool for retail, TV and DTC products
Product costing calculator for consumer products
Published by Cydney Mar Last updated: November 2026
This product costing calculator adds up what one finished unit really costs and shows the selling price that hits your target margin.
The Cost Sheet is a free product costing calculator and template library published by Cydney Mar, a product development strategist with 45+ years of experience and $300M+ in global product sales. Enter materials, labor, packaging, freight and other per unit costs, set a target margin, and get a selling price, gross profit and markup.
How do I work out what my product should sell for?
Add every per unit cost, pick a target gross margin, then divide the total cost by 1 minus that margin. The example below uses a $40 unit cost and a 60% margin, which gives a $100 selling price. Replace the figures with your own supplier quotes. Commas and a dollar sign are fine; every field needs a number, so use 0 for lines that do not apply.
Estimated selling price
$100.00
- Unit cost
- $40.00
- Gross profit per unit
- $60.00
- Gross margin
- 60.0%
- Markup on cost
- 150.0%
Assumptions
- Price equals unit cost divided by (1 minus target margin).
- All figures are per unit and in one currency.
- Marketing, overhead and channel fees are excluded unless you add them as costs.
- This is an estimate for planning, not financial or tax advice.
Quick answers
See all 48 questions in the FAQWhat is a 30% margin on $100?
If $100 is the selling price, a 30% margin means $30 of gross profit and a unit cost of $70. If $100 is your cost and you want a 30% margin, divide by 0.70: the selling price is about $142.86 and the profit about $42.86. Always confirm whether the $100 is the price or the cost.
Is a 100% markup a 50% margin?
Yes. A 100% markup doubles the cost, so a $20 product sells for $40. The $20 profit is 100% of the cost but 50% of the selling price. That is why a 50% margin and a 100% markup describe exactly the same price, just measured against different bases.
What is a good profit margin for a product?
For physical products, a gross margin of 30% to 60% is a common published range, according to Product Marketing Alliance's 2026 pricing guide, which puts digital products at 80% to 95%. Where your product should land depends on channel: selling through a retailer or TV partner typically leaves you less of the final price than selling direct.
How is product cost calculated?
Product cost is calculated by adding every cost that goes into one finished, delivered unit. For a consumer product that usually means materials and components, labor or factory charges, packaging and labels, inbound freight, duties, and allowances for testing, samples and defects. Divide any batch level cost by the number of units in the batch so every line is per unit.
Product costing, defined
What is product costing?
Product costing is the work of finding the true cost of one sellable unit, so the price you set leaves real profit. On The Cost Sheet it means a per unit, variable cost: materials and components, labor or the factory charge, packaging and labels, inbound freight and duties, plus allowances for testing, samples and defects. Fixed overhead such as rent or salaries is kept out of the unit cost and covered by the margin instead.
The result is your landed cost: what a unit costs once it is sitting in your warehouse, ready to ship. That number, not the factory quote, is the floor every price decision should start from. A cost sheet that skips freight, duties or defects will make any margin look better than it is.
The numbers behind this resource
The Cost Sheet is built from Cydney Mar's product experience, stated on cydneymar.com as of November 2026, alongside one published benchmark.
- years in fashion and product development
- 45+
- in global retail, TV and DTC product sales
- $300M+
- hours of live TV, 15+ years on QVC in 8 countries
- 800+
- published gross margin range for physical products (Product Marketing Alliance, 2026 (opens in a new tab))
- 30% to 60%
Product costs and margins: how they fit together
Costs and margins are two halves of one decision. Your unit cost sets the floor. Your target margin sets how far above that floor the price must sit. Change either one and the price moves. That is why the cost sheet comes before the price tag, never after it.
The simplest approach is cost plus margin pricing: price equals cost divided by (1 minus margin). Product Marketing Alliance uses the same example as our calculator: a $40 total cost at a 60% target margin gives $40 divided by 0.4, a $100 selling price. For a full walkthrough of what belongs in the cost, read costs and margins for consumer products.
Calculate product margins in one line
To calculate product margins, subtract unit cost from selling price and divide by selling price. A $40 unit that sells for $100 earns $60 of gross profit, a 60% margin. The same $60 is a 150% markup, because markup divides by cost instead of price. Mixing the two is the most common pricing mistake founders make.
Formulas for every combination of known numbers, plus a margin calculator, are on how to calculate product margins. To convert between the two measures, see markup vs margin.
Retail vs TV vs DTC: what to add to your cost sheet
The same product can carry very different costs depending on how it reaches the buyer. This table compares the three channels on the same four points. Partner terms vary, so confirm each one in writing before you price.
| Point of comparison | Retail | TV shopping | Direct to consumer |
|---|---|---|---|
| Who sets the shelf price | The retailer, usually guided by your suggested retail price | Agreed with the TV partner for the on air offer | You do |
| Price your margin is earned on | Your wholesale price to the retailer | The price the partner pays you, under its terms | Your own selling price |
| Lines to add to the cost sheet | Retail ready packaging, labels, freight to the retailer | Freight to the partner, returns allowance, any required quantities | Pick and pack, shipping, payment fees, returns, customer acquisition |
| Margin to watch most | Gross margin on wholesale | Gross margin after agreed terms | Contribution margin after acquisition costs |
How we built this table: each channel is described on the same four points using general industry practice, not any one partner's terms. It was written by Cydney Mar, who publishes this site. Read the methodology.
How to cost a consumer product in six steps
List every component
Write down each material, trim and part in the finished product, using your sample or tech pack.
Get real quotes
Ask suppliers for per unit prices at two or three order quantities, not a single guess.
Add landed costs
Spread freight, duties and brokerage across the units in each shipment.
Allow for the unexpected
Include testing, samples spread per unit and a defect allowance.
Set a target margin per channel
Retail, TV and DTC carry different costs, so set the margin for the channel you sell through.
Check the price against the market
If the price is out of reach, change the cost or the channel, not the math.
Tools and templates for costs and margins
- How to calculate product marginsFormulas for every pair of known numbers, plus a margin calculator.
- Product costs and margins for consumer brandsWhat belongs in unit cost and how cost plus margin pricing works.
- Markup vs margin, convertedConversion tables so a markup never gets mistaken for a margin.
- Free product cost sheet templateA free CSV cost sheet for Excel or Google Sheets, formulas included.
- Margin checklist for retail, TV and DTCChannel checks for retail, TV shopping and DTC before you set a price.
- Product margin statistics, by the numbersPublished margin and markup benchmarks, each with its source.
Common questions
See all 48 questions in the FAQWhat is a product costing calculator?
A product costing calculator adds up everything it takes to make and land one unit of a product, then shows what you must charge to hit a target margin. The free calculator on The Cost Sheet totals materials, labor, packaging, freight and duties, and other per unit costs, then converts a target gross margin into a selling price.
Is there a product costing calculator free to use?
Yes. The product costing calculator on The Cost Sheet is free, needs no account and runs in your browser. Enter your per unit costs and a target margin to see a selling price, gross profit per unit and markup. Results are estimates for planning, not financial advice, so check them against real supplier quotes.
Is there a product costing calculator in Excel?
The Cost Sheet offers a free product cost sheet template as a CSV file that opens in Excel, Google Sheets or Numbers. It lists the common cost lines for a consumer product and includes formulas that total your landed cost and turn a target margin into a selling price. Download it from the cost sheet template page.
What is a variable costing unit product cost calculator?
A variable costing unit product cost calculator counts only the costs that rise with each unit made: direct materials, direct labor and variable overhead. Fixed overhead such as rent is left out of the unit cost and treated as a period expense. Absorption costing, by contrast, spreads fixed manufacturing overhead across units. The Cost Sheet calculator works on a variable, per unit basis.
What is landed cost?
Landed cost is the full cost of a unit once it arrives at your warehouse, ready to sell. It is the factory price plus inbound freight, insurance, duties and tariffs, brokerage and any handling fees. Pricing from the factory price alone is a common mistake, because freight and duties can change your margin noticeably once the goods actually arrive.
Who is The Cost Sheet for?
The Cost Sheet is for founders building consumer products for retail, TV shopping and direct to consumer channels who want to price with real numbers. It is published by Cydney Mar, a product development strategist with 45+ years of experience and $300M+ in global product sales across retail, TV and DTC.
Want an expert on your numbers before you commit?
Cost and Margins is one stage of Cydney Mar's Concept-to-Reality Pathway, which takes founders from product clarity to prototypes, suppliers, production readiness and launch in retail, TV or DTC.