Value-Based Price Calculator

About this calculator

Value-based pricing sets a price by starting from the customer’s reference value — usually what they’d pay for the next-best competing alternative — and then adding a portion of the extra economic value your product uniquely delivers on top of that alternative, called the differentiation value. If your product saves a customer $10,000 a year more than the closest competitor, you don’t have to charge the full $10,000 premium; instead you decide what share of that value you want to capture, say 30%, and price accordingly.

This differs sharply from cost-plus pricing, which ignores what the customer is actually willing to pay and can badly underprice a genuinely differentiated product. B2B sales, product marketing and pricing strategy teams use value-based pricing especially for premium or enterprise offerings where the value delivered can be quantified. This calculator takes the reference price, your differentiation value, and the share of that value you want to capture, and returns the resulting value-based price.