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Selling price calculator

Recommended selling price (cost + margin)

Selling price 100,00 €
Profit per unit
40,00 €

To get your target margin on the sale price, the price is cost ÷ (1 − margin). Don't confuse this with applying the margin on the cost — that would be the markup.

This selling price calculator works out the price you need to charge to hit your target profit margin, starting from your product’s cost.

Pricing that leaves you a margin

Setting a price “by feel” or by simply multiplying the cost often leaves money on the table. Instead, start from the margin you actually want and work backwards to the price.

The formula

For a cost C and a target margin m (as a fraction of the sale price), the price is P = C ÷ (1 − m). The profit per unit is then P − C. This is different from adding the margin on top of the cost, which is a markup and produces a lower price than intended.

FAQ

How do I set a price for a target margin?
If you want a margin on the sale price, the price is cost ÷ (1 − margin). For a 40% margin on a 60 cost: 60 ÷ 0.6 = 100.
Why not just multiply the cost by the margin?
Because that applies the percentage on the cost (markup), not on the sale price, and you'd end up under-pricing. This calculator applies it on the sale price, which is the usual meaning of margin.
What margin should I aim for?
It depends on your industry and costs — retail often targets 30-50%, while services can go much higher. Check your fixed costs and competitors before settling on a number.