1
: paid on the basis of a fixed fee or a percentage added to actual cost
a cost-plus contract
2
: of or relating to a cost-plus contract

Examples of cost-plus in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Instead of every series getting A- level payment regardless of performance under the cost-plus model, the talent behind the biggest Apple Studios hits are being paid at an A+ level while those with moderately successful shows still make money but at a B+ level. Nellie Andreeva, Deadline, 11 Feb. 2026 The award is structured as a cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract and will remain in effect through October 2030. Kapil Kajal, Interesting Engineering, 17 Nov. 2025 Yet, too many companies rely on legacy models like cost-plus pricing or competitor matching, which ignore what customers are actually willing to pay for. Avy Punwasee, Forbes.com, 12 Sep. 2025 The agency signed cost-plus contracts with the companies building SLS and Orion, meaning the government is on the hook for cost overruns. ArsTechnica, 30 May 2025 For example, the government still does a lot of things on a cost-plus basis [paying a contractor for expenses plus an additional profit]. Alana Semuels, Time, 13 Apr. 2025 For example, grocery stores frequently employ cost-plus pricing to maintain consistent margins across thousands of products. Alexander Puutio, Forbes, 26 Feb. 2025

Word History

First Known Use

1909, in the meaning defined at sense 1

Time Traveler
The first known use of cost-plus was in 1909

Browse Nearby Words

Cite this Entry

“Cost-plus.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/cost-plus. Accessed 4 Mar. 2026.

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

More from Merriam-Webster