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Product Cost Price
Calculate your product cost price and recommended selling price.
Results
Cost price = Raw materials + Labour + Overhead. Selling price = Cost / (1 − Margin rate).
📐 Cost price and selling price
Cost price = purchase cost + direct costs + indirect costs
Suggested selling price = cost price × (1 + margin rate)
Suggested selling price = cost price × (1 + margin rate)
📊 Components of the cost price
| Component | Example |
|---|---|
| Purchase price | 100 MAD |
| Transport and shipping | 8 MAD |
| Storage and packaging | 5 MAD |
| Share of overheads | 7 MAD |
| Total cost price | 120 MAD |
💼 Pricing scenarios
Cost price 120 MAD, target margin 35%
Selling price = 120 × 1.35 = 162 MAD excl. tax.
Adding 20% VAT
Selling price incl. tax = 162 × 1.20 = 194.40 MAD.
💡 Practical tips
- Allocate indirect costs (rent, wages, electricity) across each unit.
- Always price from the real cost price, not the purchase price alone.
- Review your cost price regularly as input prices change.
⚠️ Limits and disclaimer
- Accuracy depends on correctly allocating indirect costs.
- The model ignores the effect of production volume on cost.
Official sources: Accounting and management principles · General Tax Code (DGI).
Last updated: February 2026.
Last updated: February 2026.
❓ Frequently asked questions
What is the cost price?
The sum of everything spent on the product: purchase, direct costs and a share of indirect costs.
How do I set the selling price from it?
Multiply the cost price by (1 + target margin), then add VAT.
Why not price from the purchase price alone?
Because ignoring other costs can make you sell at a loss without realizing it.