Product Pricing Calculator

How to use the Product Pricing Calculator

Find the selling price required to achieve a target margin on a known unit cost. Enter the complete unit cost and your desired margin percentage.

Formula

Selling price = cost ÷ (1 − target margin / 100).

Worked example

With $60 cost and a 40% target margin, price = 60 ÷ 0.60 = $100. Profit per unit is $40.

Interpretation and limitations

Enter 40 for 40%, not 0.40. A margin of 100% is not valid in this formula. Percentage-based platform fees must be modelled separately if they are not already reflected in the cost assumption.

Product Pricing questions

Why not multiply cost by 1.40?

That creates 40% markup, not 40% margin. On a $60 cost, $84 produces a margin of only 28.57%.

Does the suggested price prove customers will buy?

No. It is a cost-based target. Compare demand, competitors, discounting and any omitted costs before setting a price.

Continue your calculation

For the next step, use the Profit Margin Calculator or the Markup Calculator. Review each tool’s input definitions before carrying a result into another calculation.

Frequently asked questions

Is this calculator free?

Yes. It runs in your browser and does not require an account.

How should I use the result?

Use the result as a planning estimate and verify business-critical decisions against your source records.