Retail Price Recommendation Calculator

Work out retail price recommendation instantly with clear inputs, formula shown and shareable results.

About Retail Price Recommendation Calculator

Pricing for a target margin means dividing cost by one minus the margin, not adding the margin to cost. Grossing up again for expected discounting sets a list price that still delivers the target after promotions.

Formula

Margin pricing

Net price = cost / (1 - target margin); list price = net price / (1 - expected discount)

Worked example

With the default values below, Retail Price Recommendation Calculator returns Recommended List Price of $1,717.17. Change any input above and every figure here is recalculated in your browser.

Inputs used

Unit Costminimum 0: 850
Target Gross Marginaccepts 1–95 %: 45 %
Competitor Priceminimum 0: 1,700
Expected Discountingaccepts 0–60 %: 10 %

Results

Recommended List Price: $1,717.17
Net Price Needed For The Target Margin: $1,545.45
Markup On Cost: 81.818%
Difference From The Competitor Price: $17.17

Step by step

1Values used
2Margin pricing
3Recommended List Price= 1,717.17
4Net Price Needed For The Target Margin= 1,545.45
5Markup On Cost= 81.818
6Difference From The Competitor Price= 17.17

Assumptions and limits

The result is derived only from the 4 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 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
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.

Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.

Frequently Asked Questions

Why is margin not the same as markup?

Margin is on selling price, markup on cost. A 45% margin is an 82% markup on cost.

Should the competitor price override the calculation?

It is a constraint, not an input. If your cost cannot support the market price, the product needs rethinking.