Find the price that yields a target margin at a given cost.
Backing into a price from a target margin divides cost by one minus the margin, solving for the price rather than accepting whatever markup a habit produces. Margin-target pricing keeps discounts and promotions from silently eroding the profit built into every sale.
Price for Target Margin
Price = cost / (1 - target margin%)
Price = cost / (1 - target margin%) Backing into a price from a target margin divides cost by one minus the margin, solving for the price rather than accepting whatever markup a habit produces.
Margin-target pricing keeps discounts and promotions from silently eroding the profit built into every sale.
This calculator takes 3 inputs: Cost per unit, Target margin, Units to sell. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.