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:

- First, determine the cost of goods sold ($).
- The cost of goods sold ($) is given as: 45.

- Next, determine the desired margin (%).
- The desired margin (%) is provided as: 25.

- 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)** = ?**