Enter the cost of goods sold ($) and the desired margin (%) into the Sales Price Calculator. The calculator will evaluate and display the Sales Price. 

Sales Price Formula

The following formula is used to calculate the Sales Price. 

SP = COGS / (1-DM/100)
  • Where SP is the Sales Price ($)
  • COGS is the cost of goods sold ($) 
  • DM is the desired margin (%) 

To calculate the sale price, divide the cost of goods sold by 1 minus the desired margin.

How to Calculate Sales Price?

The following example problems outline how to calculate Sales Price.

Example Problem #1:

  1. First, determine the cost of goods sold ($).
    1. The cost of goods sold ($) is given as: 45.
  2. Next, determine the desired margin (%).
    1. The desired margin (%) is provided as: 25.
  3. Finally, calculate the Sales Price using the equation above: 

SP = COGS / (1-DM/100)

The values given above are inserted into the equation below:

SP = 45 / (1-25/100) = 60 ($)

Example Problem #2: 

For this problem, the variables needed are provided below:

cost of goods sold ($) = 80

desired margin (%) = 20

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

SP = COGS / (1-DM/100) = ?