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 (%)

To calculate the margin price, divide the item cost by 1 minus the margin rate.

## How to Calculate Margin Price?

The following example problems outline how to calculate Margin Price.

Example Problem #1:

- First, determine the item cost ($).
- The item cost ($) is given as: 500.

- Next, determine the margin percentage (%).
- The margin percentage (%) is provided as: 20.

- 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)** = ?**