cost-plus

American

[kawst-pluhs, kost-] / ˈkɔstˈplʌs, ˈkɒst- /

adjective

paid or providing for payment based on the cost of production plus an agreed-upon fee or rate of profit, as certain government contracts.
of or relating to a cost-plus arrangement or contract.

cost-plus British

noun

1. a method of establishing a selling price in which an agreed percentage is added to the cost price to cover profit
2. ( as modifier )
  
  cost-plus pricing

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of cost-plus

First recorded in 1915–20

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The market is running away as fast as it can from centralized, government-run, cost-plus space endeavors.

From The Wall Street Journal • Feb. 3, 2026

The current model is to give so-called "cost-plus" contracts to big heritage aerospace companies, such as Lockheed Martin and Boeing, which guarantee to pay the development costs and an agreed profit.

From BBC • Feb. 1, 2025

If she’s still on fantasy island, gently explain how the cost-plus contract pricing works and how you feel this is the right way to approach compensation.

From Slate • Nov. 23, 2022

“If Northrop Grumman didn’t have that cost-plus contract, they could not independently make money from it later on.”

From The Verge • Aug. 1, 2018

Contracting has gradually improved, as more oversight has been exercised and fewer cost-plus contracts have been granted; in addition, the use of Iraqi contractors has enabled the employment of more Iraqis in reconstruction projects.

From The Iraq Study Group Report by Iraq Study Group (U.S.)

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023