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Cost (HPP) & Pricing Calculator
Work out your product's cost of production or a fair service rate, then get a suggested price with a healthy margin. Free, no signup, instant results.
For physical goods: work out material, labour, and overhead cost per unit.
Suggested selling price
This is a starting estimate based on the figures you entered. A final price still has to account for market rates, what your customers can afford, and where competitors sit. A price that's correct on paper won't sell if it's far above the market — and if it's far below, you may be losing money without realising it.
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The pricing mistakes small businesses make most
- 1
Forgetting to price your own time. If you're on the production line, your labour is still a cost. Plenty of owners feel profitable while effectively paying themselves Rp0 an hour.
- 2
Using the wrong markup formula. Adding 30% to cost (cost × 1.3) does NOT produce a 30% margin — it produces 23%. This calculator uses cost / (1 − margin) so your target margin is the margin you actually get.
- 3
Ignoring overhead. Electricity, gas, rent, tool wear — it all attaches to each unit. Leave it out and your cost looks cheaper than reality.
- 4
Copying the shop next door. Every business has a different cost structure. A competitor's price is a useful market signal, not a basis for yours — they may be losing money without knowing it.
FAQ
Frequently asked questions
What is HPP, and how is it different from the selling price?
HPP (cost of production) is everything you spend to make one unit: raw materials, direct labour, and production overhead. The selling price is HPP plus your desired margin. HPP is the floor — selling below it loses money on every transaction. The selling price is a business decision weighing HPP, market rates, and your brand position.
Why isn't a 30% markup the same as a 30% margin?
They're calculated from different bases. Markup is a percentage of cost; margin is a percentage of the selling price. Example: Rp70,000 cost plus a 30% markup is Rp91,000, a Rp21,000 profit — that's 23% of the price, not 30%. For a true 30% margin the price must be Rp70,000 / (1 − 0.3) = Rp100,000. That Rp9,000 gap per unit looks small, but across 500 units a month it's Rp4.5 million left on the table.
What margin is reasonable for a small business?
It depends heavily on the sector and how fast you turn stock over. Food businesses typically run 40-60% because ingredients spoil and hidden costs abound. Fashion and crafts often sit at 50-70%. Fast-moving retail goods can survive on 15-25%. Services usually run higher because the main input is time and expertise. What matters isn't the headline number but whether it covers all your fixed costs and leaves real profit.
How do I decide my productive hours per month for services?
Don't use 8 hours × 30 days (240). That's the classic trap. Much of your time isn't billable: answering enquiries, writing quotes, revisions, admin, finding clients, and resting. A realistic figure for most freelancers and service owners is 120-160 hours a month. The higher the number you use, the cheaper your hourly rate becomes, and the likelier you are to burn out while still feeling underpaid.
What is the break-even point and why does it matter?
It's how many units you must sell in a month to cover all your fixed costs — the point where you neither profit nor lose. Every unit after that is real profit. It matters because it turns a vague goal ('sell a lot') into a concrete daily target. If your break-even is 300 units a month, you need 10 a day before you earn anything.
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