Minimum Viable Price Calculator
Find the lowest price you can sell at and still hit your target margin, from variable cost, allocated overhead and the profit you refuse to go below.
How it works
Total cost = variable + allocated fixed · Break-even = total cost · Minimum viable price = total cost ÷ (1 − minimum margin)
Your minimum viable price is the lowest number that still respects both your costs and the margin you have decided you must earn. It starts from full cost per unit — variable cost plus a fair share of fixed overhead — then grosses that up so the target margin sits on top. Below the break-even price you lose money on every sale; below the variable cost you lose money the instant you ship, which is the true absolute floor for any short-term promotion.
Worked example
With $12 of variable cost and $4 of allocated overhead, total cost is $16. To hold a 20% margin, the minimum viable price is 16 ÷ (1 − 0.20) = $20, leaving $4 profit. Break-even is $16, and you should never ship below the $12 variable-cost floor.
Frequently asked questions
How is minimum viable price different from break-even?
Break-even is the price that merely covers total cost with zero profit. The minimum viable price adds your required margin on top, so it is always higher — it is the lowest price consistent with staying profitably in business, not just avoiding a loss.
How do I allocate fixed overhead per unit?
Divide your total fixed costs for a period (rent, salaries, software, tooling) by the number of units you realistically expect to sell in that period. Fewer units means more overhead loaded onto each one, which raises the minimum viable price — a reason volume assumptions matter.
Can I ever sell below the minimum viable price?
Temporarily, yes — for a loss-leader or clearance you might price between the variable cost and break-even to recover something rather than nothing. But you cannot do it sustainably, and pricing below the variable cost floor loses cash on every unit sold.
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Educational estimate, not financial advice. Fee rates and duties change — confirm current figures with the marketplace, carrier or customs authority.