Pricing Calculator
Calculate the right selling price from your cost and desired profit margin — see markup, profit, and pricing breakdown.
Selling Price
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Cost per Unit
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Profit per Unit
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Profit Margin
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Markup
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Total Revenue
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Total Profit
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How to Use the Pricing Calculator
- Enter your cost: The cost to produce or acquire each unit.
- Set desired margin: The profit margin percentage you want to achieve, or use a quick preset.
- Optionally enter units: Expected units sold to see total revenue and profit projections.
- View your results: Selling price, profit per unit, markup, and totals appear instantly.
Pricing Formula
The selling price from a desired margin is:
Selling Price = Cost / (1 - Margin% / 100)
For example, with a cost of $60 and a desired 40% margin:
Selling Price = $60 / (1 - 0.40) = $60 / 0.60 = $100
Margin to Selling Price Examples
| Cost | Desired Margin | Selling Price | Profit | Markup |
|---|---|---|---|---|
| $50 | 20% | $62.50 | $12.50 | 25% |
| $50 | 30% | $71.43 | $21.43 | 42.9% |
| $50 | 40% | $83.33 | $33.33 | 66.7% |
| $50 | 50% | $100.00 | $50.00 | 100% |
| $100 | 60% | $250.00 | $150.00 | 150% |
Frequently Asked Questions
How do I set my selling price?
Start with your cost, add your desired profit margin, and consider market conditions. Research competitor pricing and ensure your price covers all costs while remaining competitive.
Why is margin-based pricing better than markup-based?
Margin-based pricing directly tells you what percentage of revenue is profit, making it easier to forecast profitability. A 30% margin always means 30 cents of every dollar is profit. With markup, you need to convert to understand revenue impact.
What margin should I target?
Target margins depend on your industry, competition, and business model. Retail averages 2-5%, SaaS 70-85%, consulting 25-50%. Cover all costs (including overhead, marketing, and taxes) before setting your target margin.