Business

Pricing With Margin Calculator

Set a selling price from cost and a target profit margin percentage.

Cost per unit ($)
Target profit margin (%)

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This selling price is the price per unit that leaves your target margin after covering the cost.

Formula

Selling price = cost divided by (1 minus target margin as a decimal). Margin here means profit as a share of the selling price.

How it works

Enter what each unit costs and the margin you want to keep from the final price. The calculator works backwards to the price that leaves that margin after cost. Note that margin and markup are different: a 30 percent margin needs a higher price than a 30 percent markup.

Worked example

For example, a cost of $40 per unit with a 30% target margin gives a selling price of $57.14, because $40 ÷ (1 - 0.30) = $57.14.

FAQs

Margin vs markup, what is the difference?
Margin is profit as a share of price; markup is profit as a share of cost. The same profit gives a higher markup percentage than margin percentage.

Does this include taxes and fees?
No. Add sales tax, platform fees or delivery costs separately if they apply.

What if margin is 0%?
Then price equals cost, which leaves nothing for overheads or profit.

Estimates only, not financial advice. Check your figures before making a business decision.