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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.
Method and reliability: informative estimate based on the stated parameters and reviewed in July 2026. See our calculation method and sources. Seek qualified professional advice before an important tax, legal, medical or financial decision.