Minimum Viable Price Calculator

How it is calculated

The tool spreads your fixed costs over the units you expect to sell and adds the cost of each unit: fixed per unit = total fixed cost ÷ units, then minimum price = variable cost per unit + fixed per unit. Break-even revenue is minimum price × units, which equals total variable cost plus total fixed cost. At exactly this price your profit is zero. Variable cost and fixed cost may be zero but not negative, and units must be at least 1. The fixed costs should cover the same period as the units: for example, yearly fixed costs with yearly units. The result is a floor, not a recommended price, and it contains no profit margin, tax or percentage-based fee.

Common mistakes

• Treating the minimum price as the selling price. At this price you earn nothing; a margin, taxes and a safety buffer all come on top of it.
• Using an over-optimistic unit forecast. The fixed cost per unit falls as volume rises, so if you sell fewer units than assumed, the price you set will be below your real break-even.
• Mixing periods, such as monthly fixed costs with yearly units. Both inputs must cover the same period.
• Putting percentage-based costs (card fees, marketplace commission) into variable cost as a fixed dollar amount. They grow with the price, so a fixed figure understates them at higher prices.
• Leaving out the fixed costs that feel small, such as software subscriptions or insurance. Fixed costs are divided by units, so a forgotten cost lowers the floor for every unit.