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Selling Price From Margin Calculator

Work out selling price from margin instantly with clear inputs, formula shown and shareable results.

About Selling Price From Margin Calculator

Margin is measured against the selling price, so you cannot simply add the margin percentage to cost. Dividing cost by (1 - margin) grosses the cost up correctly and the calculator also shows the equivalent markup on cost, which is the number most suppliers quote.

Formulas

Selling price

Price = Cost / (1 - Margin %)

Markup equivalent

Markup % = Margin % / (1 - Margin %)

Worked example

With the default values below, Selling Price From Margin Calculator returns Required selling price of $64.62. Change any input above and every figure here is recalculated in your browser.

Inputs used

Unit cost
42
Target gross margin
35

Results

Required selling price
$64.62
Gross profit per unit
$22.62
Equivalent markup on cost
53.85%
Achieved margin
35.00%

Step by step

  1. 1Values used
  2. 2Selling price
  3. 3Markup equivalent
  4. 4Required selling price= 64.62
  5. 5Gross profit per unit= 22.62
  6. 6Equivalent markup on cost= 53.85
  7. 7Achieved margin= 35.00

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

Why is a 35% margin not a 35% markup?

Margin divides profit by price; markup divides the same profit by cost. A 35% margin is a 53.8% markup because the denominator is smaller.

What margin should I target?

It depends on the category: fast-moving grocery lines run on single digits, while services and branded goods routinely exceed 50%. Work back from the gross profit needed to cover fixed costs.

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