Value-Based Pricing vs. Cost-Plus Estimator

Compare a traditional cost-plus price with a price based on the value your client receives, and see how much margin may be left untapped.

1. Cost-plus pricing

Hours to deliver the project0

0250500

Internal cost per hour

Direct costs (tools, materials, contractors)

Cost-plus markup0%

0%100%200%

2. Value to the client

Use one or both value drivers. Leave a driver at zero if it does not apply.

Extra client revenue per month

Client profit margin on that revenue0%

0%50%100%

Client hours saved per month0

0250500

Value of one client hour

Months of value counted0

01836

Share of value you charge for

0%25%50%

Estimated results

Cost-plus price$0.00

Value-based price$0.00

Untapped margin opportunity$0.00

Premium over cost-plus0.0%

Calculation breakdown

Cost-plus

Value-based

Price

$0.00

Delivery cost

$0.00

Profit

$0.00

Profit margin

0.0%

Effective hourly rate

$0.00

Client return (value ÷ price)

0.0×

Value created for the client

Per month: extra revenue (profit)$0.00

Per month: time saved$0.00

Total per month$0.00

Total over the period$0.00

These are estimates, not a guarantee. Value-based pricing depends on the client agreeing with your value assumptions and on actual results. Figures exclude taxes, overhead not entered above, discounts, and payment terms. A positive opportunity shows where the value-based price exceeds the cost-plus price.