Enter the total cost of materials and labor to make the cake ($) and the desired margin (%) into the Cake Price Calculator. The calculator will evaluate and display the Cake Price. 

Cake Price Formula

The following formula is used to calculate the Cake Price. 

CP = C / (1-DM/100)
  • Where CP is the Cake Price ($)
  • C is the total cost of materials and labor to make the cake ($) 
  • DM is the desired margin (%) 

How to Calculate Cake Price?

The following example problems outline how to calculate Cake Price.

Example Problem #1:

  1. First, determine the total cost of materials and labor to make the cake ($).
    1. The total cost of materials and labor to make the cake ($) is given as: 7.50.
  2. Next, determine the desired margin (%).
    1. The desired margin (%) is provided as: 75.
  3. Finally, calculate the Cake Price using the equation above: 

CP = C / (1-DM/100)

The values given above are inserted into the equation below:

CP = 7.50 / (1-75/100) = 30.00 ($)

Example Problem #2: 

For this problem, the variables needed are provided below:

total cost of materials and labor to make the cake ($) = 8.00

desired margin (%) = 25

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

CP = C / (1-DM/100) = ?