Enter the baking costs ($) and the target margin (%) into the Baking Price Calculator. The calculator will evaluate and display the Baking Price. 

Baking Price Formula

The following formula is used to calculate the Baking Price. 

BP = BC / (1-m/100)
  • Where BP is the Baking Price ($)
  • BC is the baking costs ($) 
  • m is the target margin (%) 

To calculate the baking price, divide the baking costs by 1 minus the target margin.

How to Calculate Baking Price?

The following example problems outline how to calculate Baking Price.

Example Problem #1:

  1. First, determine the baking costs ($).
    1. The baking costs ($) is given as: 50.
  2. Next, determine the target margin (%).
    1. The target margin (%) is provided as: 25.
  3. Finally, calculate the Baking Price using the equation above: 

BP = BC / (1-m/100)

The values given above are inserted into the equation below:

BP = 50 / (1-25/100) = 66.67 ($)

Example Problem #2: 

For this problem, the variables needed are provided below:

baking costs ($) = 75

target margin (%) = 20

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

BP = BC / (1-m/100) = ?