See how a mathematician would create a simple-to-use pricing calculator using Microsoft Excel.

Pricing calculators are extremely beneficial to both your company and your customer.

It gives your customers information they seek–the cost estimate of your product or service–while building a certain amount of trust to your company for being straightforward with such information. It’s a great thing to know that you can easily build one with a staple office software such as Microsoft Excel. You may have to think a bit like a mathematician to get your desired results but lucky for you, LeadDoubler’s own math experts are here to give you some tips.

1. Define the output

First, decide on which value you want to give your customer. Do you want to demonstrate the savings they will get from a monthly subscription/service over a one-time expenditure? Or do you simply want to be upfront with your bargain-of-an-offer? Starting at the end (output), instead of the beginning (the input), helps piece together the end product that is your pricing calculator.

A few example outputs of pricing calculators:

Setup Cost – a one-time cost for your customer. Examples are house work/renovation services.

Subscription Cost – whether it’s a weekly, monthly or annual spend, this is for a periodic cost for the customer

Extras – the extra value that you can give your customer can be a desired output

2. Define what you need to reach the output

Now that you know what output you need to calculate – you can move backwards and find the variables or factors to complete the equation.

Note that a price or pricing calculators gives a cost ESTIMATE. Make sure to communicate this clearly to customers who may be expecting a 100% precise calculation.

Now start listing the parts that sum up to the final price. We usually do this in a small table with the following columns:

Column A: product/service titleColumn B: the variable amount (amount in pieces or hours depending on your product or service) Column C: cost per variable (cost per piece/per hour) Column D: the product of column B and Column C. Below all columns, Column E: other variables like service fee or tax (if any) Beneath the last column, you can write the total

Once you’ve defined the variables for the total output, you might want to add a discount. We recommend doing this on top of the total cost. A discount is calculated with a higher percentage for a higher total. For example: a 5% discount is a good start for a cost of $500 and above and a 10% discount for a cost worth $1.000 and so forth.

3. Define the input fields

Once you’ve determined the factors for your output, you can decide what inputs you need from the user. When deciding on input fields we strongly recommend keeping them 1) easy and 2) to a minimum.

Easy – ask for information the user already knows. Having to look up information somewhere else can be a turn off as well as a distraction for your customer.

Minimum input fields are better than many. Too many questions may annoy your customer as well as create doubt on why they are being asked more than what is necessary.

Conclusion

Those are the 3 simple steps you need for your own pricing calculator. Now all that’s left to do is convert that Excel spreadsheet with a few clicks on our app.

If you’d like to know more or need some advice, we would be happy to set up a FREE consultation with you. You can arrange it through the form below and we will gladly help you set up your own pricing calculator in as little as 15 minutes.