How it’s calculated
- Price that covers costs
- equals (Monthly costs ÷ Sales + Cost per sale) ÷ (1 − Fees %)
- Price that pays you
- equals ((Monthly costs + Your pay before tax) ÷ Sales + Cost per sale) ÷ (1 − Fees %)
- Recommended price
- equals Same as above, ÷ (1 − Fees % − Profit cushion %)
- Your pay before tax
- equals Take-home ÷ (1 − Tax set-aside %)
“Sales” is your expected sales per month. If you enter your hours instead, the calculator assumes you sell 70% of what your hours allow — leaving room for slow weeks. The recommended price is rounded up to a sensible price point and never set below what competitors typically charge.
Worked example
A mobile car detailer spends about $20 per job on supplies and travel, has $800 a month in running costs, pays 3% card fees and wants to take home $4,000 a month after setting aside 25% for tax. They can work 40 hours a week at 2.5 hours per job.
- Pay before tax = $4,000 ÷ 0.75 = $5,333 a month
- Expected sales = 70% of 52 possible jobs = 36.4 jobs a month
- Price that covers costs = ($800 ÷ 36.4 + $20) ÷ 0.97 = $43.28
- Price that pays you = (($800 + $5,333) ÷ 36.4 + $20) ÷ 0.97 = $194.33
- Recommended, with a 10% cushion = $216.66 → $220.00
Competitors charge $150–$220, so $220.00 is at the top of the market. Covering costs alone would need only $43.28 — the difference is the owner’s pay, which most pricing guesses leave out.
Assumptions and limitations
- Your own time is paid through your take-home target, not as a cost per sale. Don’t count it twice.
- The tax set-aside is your own estimate of income and self-employment tax on profit; this isn’t tax advice.
- Prices and costs are monthly averages. Seasonal businesses should test their slow months separately.
- Competitor prices show where you sit, not what customers will pay you. Test your price with real customers.
Results are estimates for information only and are not financial, tax or legal advice. See our disclaimer.