Absolute floor price
$44.85Calculator
Pricing Floor Calculator
Find the minimum price that covers variable costs and preserves your target contribution margin.
Results
Price guardrails
Use the absolute floor as a hard stop and the target price as the operating guardrail.
Target price
$55.06Promo floor
$64.77Margin at current price
36.6%Output summary
This is a floor model, not a demand model. It tells you what the economics require, not what the market will accept.
| Absolute floor price | $44.85 |
|---|---|
| Target price | $55.06 |
| Promo floor | $64.77 |
| Margin at entered price | 36.6% |
| Guardrail status | Current price is above floor |
How it works
- A floor price is only useful if it includes the costs that actually move with the order.
- The absolute floor covers variable costs. The target price also preserves your required contribution margin.
- Promo scenarios matter because discounts reduce revenue while most costs stay largely intact.
- Floor pricing based on COGS alone is usually misleading.
Common mistakes
- Pricing off markup only.
- Excluding fulfillment and returns from the floor calculation.
- Setting discounts without margin guardrails.
- Confusing floor price with ideal market price.