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) = ?