FINBIZTOOLS
Pricing Calculator
Find a selling price from a cost and a target margin or a target markup. Enter your cost and choose which target you are aiming for; the calculated price, profit and both resulting percentages are shown together.
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Changes the currency symbol and number format only. Amounts are not converted.
How to use the Pricing Calculator
- Choose whether you are targeting a margin or a markup.
- Enter your cost.
- Enter the target margin or target markup percentage for the mode you chose.
- Select Calculate to see the calculated selling price, profit per unit, and the resulting margin and markup.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
Margin pricing vs markup pricing
Pricing from a target margin sets the price so that profit is a chosen percentage of the selling price. Pricing from a target markup sets the price so that profit is a chosen percentage of cost. The two approaches give different prices for the same target percentage.
This calculator shows the resulting margin and markup side by side, whichever target you use, so you can see both figures for the price it calculates.
How the calculation works
Pricing formulas
Target margin: Selling Price = Cost ÷ (1 − Target Margin)
Target markup: Selling Price = Cost × (1 + Target Markup)
- Cost is the entered cost price.
- Target margin or target markup is entered as a percentage and used as a decimal in the formula.
The calculated selling price is a mathematical result of the entered target, not a recommendation of what to charge. A target margin of 100% or more is not accepted because it would require an infinite or negative price.
Pricing calculation example
Cost of 80 with a 20% target margin:
| Cost | 80 |
|---|---|
| Target margin | 20% |
| Cost | 80 |
|---|---|
| Calculated selling price | 100 |
| Profit per unit | 20 |
| Resulting margin | 20% |
| Resulting markup | 25% |
The same cost of 80 with a 25% target markup produces the same selling price of 100, because a 25% markup and a 20% margin describe the identical price in this example. Amounts are shown without a currency symbol; the currency selector only changes the symbol and number format.
Assumptions and limitations
Assumptions
- Cost is a single figure you supply; the calculator does not add tax, shipping or other line items to it.
- The calculated price is a starting point based purely on the entered cost and target, before competitive, demand or tax considerations.
Limitations and why results can differ
- This is a calculated price, not personalized pricing or business advice, and does not account for market conditions or competitor pricing.
- Extremely large target margins or markups can produce very large or very small prices; verify the result makes sense for your product before using it.
Frequently asked questions
Should I use margin or markup to set a price?
Both are valid starting points; they simply use a different base for the same profit percentage. This calculator lets you enter either target and always shows both resulting figures.
Why is a 100% target margin rejected?
With a positive cost, a finite selling price cannot produce a 100% margin, because that would require dividing by zero.
Is a 25% markup the same as a 25% margin?
No. They are different percentages of different bases. A 25% markup on a cost of 80 gives a 20% margin on the resulting price of 100.
Does the calculator tell me what price to charge?
No. It shows a calculated selling price for the entered target. It is not a recommendation or personalized pricing advice.
Methodology
Cost is validated as a finite number from 0.01 to 1,000,000,000. Depending on the chosen mode, the target margin (−10,000% to 99.99%) or target markup (−100% to 10,000%) is validated, and the selling price is calculated directly from the corresponding formula.
Resulting margin and markup are both calculated from the computed selling price and entered cost, with no intermediate rounding before display rounding. A calculated selling price of zero or less is rejected with an explanation rather than shown as a meaningless price. The calculation runs in your browser and inputs are not sent to a server.
Last reviewed:
Disclaimer
Results are calculated estimates based on the figures you enter. They are not accounting, pricing, tax or legal advice. Verify important business and pricing decisions with your own records and a qualified professional. Read the full Disclaimer.
Explore this topic
This tool is part of Pricing and Margins.
A common order: work out your margin, set a price from cost, then find the sales volume needed to break even.
- Profit Margin Calculator
- Pricing Calculator (this page)
- Break-Even Calculator