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

Price Formula

The following formula is used to calculate the Price. 

P = C/ (1-GM/100)

  • Where P is the Price ($)
  • C is the cost ($) 
  • GM is the gross margin (%) 

How to Calculate Price?

The following example problems outline how to calculate Price.

Example Problem #1:

  1. First, determine the cost ($). 
    1. The cost ($) is given as: 100.
  2. Next, determine the gross margin (%). 
    1. The gross margin (%) is provided as: 50.
  3. Finally, calculate the Price using the equation above: 

P = C/ (1-GM/100)

The values given above are inserted into the equation below:

P = 100/ (1-50/100) = 200 ($)


Example Problem #2: 

For this problem, the variables needed are provided below:

cost ($) = 300

gross margin (%) = 25

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

P = C/ (1-GM/100) = ?