Selling Price Calculator
Set a margin goal and get the price that delivers it.
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Selling Price Calculator by TheCalcTools
How the Selling Price Calculator works
Enter the cost of one unit and the percentage you want to earn.
Choose whether that percentage is a profit margin (share of price) or a markup (share of cost).
The price is cost ÷ (1 − margin) for margin, or cost × (1 + markup) for markup.
The formula
Worked example
Using the default values shown in the calculator:
| Unit cost | $40 |
|---|---|
| Target percentage | 35 % |
| Target is a | Profit margin |
- Price = $40 ÷ (1 − 0.35) = $61.54.
- Profit per unit = $21.54, equal to 53.85% markup on cost.
Result:
| Selling price | $61.54 |
|---|---|
| Profit per unit | $21.54 |
| Equivalent in the other measure | 53.85% |
Frequently asked questions
Why does a 35% margin need a bigger price than a 35% markup?
Margin is measured against the higher selling price, so reaching it requires a larger mark-up on cost.
Should I add tax afterwards?
Yes. Sales tax or VAT is added on top of your selling price and is not part of your profit.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.