Work out cost price from margin instantly with clear inputs, formula shown and shareable results.
Working backwards from a known price and margin gives you the maximum cost you can pay a supplier and still hit the margin target. It is the standard sourcing calculation for retail buyers and for anyone negotiating a landed cost.
Cost price
Cost = Price x (1 - Margin %)
Cost ratio
Cost % of price = 100 - Margin %
Only if you treat the result as a landed cost. Deduct inbound freight, duty and handling from it to get the maximum ex-works price you can accept.
Then it is a markup, not a margin: divide the price by (1 + markup) instead.