How much is this/it?

[Rachel Adams]

Which sounds natural?

1. "How much is this?"
2. "How much is it?"

Is "this" correct only if I am pointing at the object or holding it in my hand?

 

[Tarheel]

Generally it has to to with distance. "This" is for near, and "that" is for far.

 

[emsr2d2]

Use "How much is it?" if you've already established what it is.

Shop customer: You know that really lovely green plant holder in the window?
Staff: Yes.
Customer: How much is it?
Staff: Seventeen pounds fifity.
Customer: Great! I'll take one.