Selling Price Calculator
Work out a selling price from cost and the profit margin you want.
About the Selling Price Calculator
Enter your cost per unit and the profit margin you want, and optionally a sales tax or VAT rate. The calculator gives the selling price, the profit per unit, the equivalent markup and the price including tax.
To hit a target margin, divide cost by (1 − margin). Adding the margin percentage to cost gives too low a price: a 30% margin on a 40 cost is 57.14, not 52.
The formula
Price = cost ÷ (1 − margin)
Worked example
Cost 40, target margin 30%
- Price = 40 ÷ (1 − 0.30) = 57.14
- Profit: 17.14, which is 30% of 57.14
- That's a 42.86% markup on cost
Things to keep in mind
- Cost should include everything per unit: product, packaging, payment fees and shipping you pay.
Questions people ask
Why not cost × 1.3?
That's a 30% markup, which is only a 23% margin.
Should tax be in the margin?
No: work out the price before tax, then add tax.
Margin or markup: which do retailers use?
Retailers usually talk in margin; wholesalers and trades often use markup. Make sure everyone means the same one.