Pricing for Profit
Free Pricing for Profit calculator with clear step-by-step results.
About Pricing for Profit
Margin pricing backs the desired profit share out of the selling price.
Formula
Formula
Price = cost ÷ (1 − desired margin)
Worked example
With the default values below, Pricing for Profit returns Selling Price of $33.33. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Cost per unitminimum 0 $
- 20 $
- Desired marginaccepts 0–90
- 40
Results
- Selling Price
- $33.33
- Profit per Unit
- $13.33
- Achieved Margin
- 40.0%
Step by step
- 1Values used
- 2Formula
- 3Selling Price= $33.33
- 4Profit per Unit= $13.33
- 5Achieved Margin= 40.0
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Margin pricing backs the desired profit share out of the selling price.
Why does this matter?
Margin is a share of price, not a markup on cost.