Enter the cost to make one pizza ($) and the sale margin (%) into the Pizza Price Calculator. The calculator will evaluate and display the Pizza Price.
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Pizza Price Formula
The following formula is used to calculate the Pizza Price.
PP = CP / (1-SM/100)
- Where PP is the Pizza Price ($)
- CP is the cost to make one pizza ($)
- SM is the sale margin (%)
To calculate the pizza price, divide the pizza cost by 1 minus the sale margin.
How to Calculate Pizza Price?
The following example problems outline how to calculate Pizza Price.
Example Problem #1:
- First, determine the cost to make one pizza ($).
- The cost to make one pizza ($) is given as: 3.50.
- Next, determine the sale margin (%).
- The sale margin (%) is provided as: 40.
- Finally, calculate the Pizza Price using the equation above:
PP = CP / (1-SM/100)
The values given above are inserted into the equation below:
PP = 3.50 / (1-40/100) = 5.833 ($)
Example Problem #2:
For this problem, the variables needed are provided below:
cost to make one pizza ($) = 4.50
sale margin (%) = 20
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
PP = CP / (1-SM/100) = ?