Free online calculator
Product Pricing Calculator
Find the selling price required to achieve a target margin on a known unit cost. Includes a worked example, formula and practical FAQs.
Formula: Selling price = unit cost ÷ (1 − target margin)
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.