Enter the item cost ($) and the margin percentage (%) into the Margin Price Calculator. The calculator will evaluate and display the Margin Price. 

Margin Price Formula

The following formula is used to calculate the Margin Price. 

MP = IC / (1-M/100)

  • Where MP is the Margin Price ($)
  • IC is the item cost ($) 
  • M is the margin percentage (%) 

How to Calculate Margin Price?

The following example problems outline how to calculate Margin Price.

Example Problem #1:

  1. First, determine the item cost ($). 
    1. The item cost ($) is given as: 500.
  2. Next, determine the margin percentage (%). 
    1. The margin percentage (%) is provided as: 20.
  3. Finally, calculate the Margin Price using the equation above: 

MP = IC / (1-M/100)

The values given above are inserted into the equation below:

MP = 500 / (1-20/100) = 625.00 ($)

Example Problem #2: 

For this problem, the variables needed are provided below:

item cost ($) = 600

margin percentage (%) = 30

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

MP = IC / (1-M/100) = ?