Target Margin Selling Price Calculator
Required selling price equals unit cost divided by one minus the target-margin fraction. A cost of 60 and a 40% target margin gives a price of 100.
Formula & method
Selling price = included unit cost ÷ (1 − target margin ÷ 100).Worked example
| Input | Value |
|---|---|
| Included unit cost | 60 ¤ |
| Target margin | 40 % |
| Result | Value |
|---|---|
| Modeled selling price | 100 ¤ |
| Price less included cost | 40 ¤ |
Compare scenarios
The first input changes while the other example inputs stay fixed. These are arithmetic scenarios, not forecasts.
| Compare scenarios | Included unit cost ¤ | Modeled selling price | Price less included cost |
|---|---|---|---|
| −20% | 48 | 80 ¤ | 32 ¤ |
| Example | 60 | 100 ¤ | 40 ¤ |
| +20% | 72 | 120 ¤ | 48 ¤ |
Assumptions & limits
This calculation assumes a fixed cost per unit. Fees charged as a percentage of selling price require an additional adjustment. It does not determine demand, a competitive price, tax handling or the accounting costs you should include.
Displayed results are rounded. Calculations use unrounded JavaScript numbers; small floating-point differences are possible.
Use the same currency and reporting period for every monetary input. This tool does not fetch prices, exchange rates or account data.
Works in your browser
The interactive tool runs in a sandbox with network access blocked. ClearByte and the advertising scripts cannot read values inside it. Browser extensions and a compromised device remain outside this protection.
Sources & definitions
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Continue with a related task
Gross Margin Calculator
Gross margin is revenue minus included cost of goods, divided by revenue, multiplied by 100. Revenue of 1,000 and cost of 650 gives a gross profit of 350 and margin of 35%.
Markup Calculator
Markup equals selling price minus cost, divided by cost, multiplied by 100. Buying at 80 and selling at 100 gives a 25% markup, while the margin is 20%.
Break-Even Sales Units Calculator
Break-even units equal fixed costs divided by selling price minus variable cost per unit, rounded up. The model requires a positive contribution per unit.
Unit Price Calculator
Unit price equals total package price divided by quantity. A package costing 18 for 12 equivalent units costs 1.50 per unit.