Selling Price Calculator
Calculate what to charge customers to guarantee a specific target profit margin after all costs.
Calculation Inputs & Parameters
75
(Default)
40
(Default)
Required Selling Price
$125.00
Gross Profit per Unit
$50.00
Equivalent Markup
66.67%
Target Margin
40%
How the Calculation Works
Divides unit cost by (1 - Margin) to ensure margin percentage holds.
Formula: Selling Price = Cost / (1 - Desired Margin %)
Practical Worked Example
Given Inputs: Cost: 75 | Target Margin: 40%
Calculated Output: Price: 125.00 | Profit: 50.00
- 75 / (1 - 0.40) = 75 / 0.60 = 125.00.
Pro Tip: Always include a buffer for unexpected costs or overheads in your margin to ensure true profitability.