Calculate target price from item cost and desired margin, including waste or overhead presets, and see gross profit and markup percentages.

Target Price Calculator

Quantity is used to estimate total revenue and total profit.

Results

Target Price
$0.00
Profit Per Unit
$0.00
Profit Margin
0.00%
Markup
0.00%
Change From Current Price
$0.00
Total Revenue
$0.00
Total Profit
$0.00

Target Price Formula

The following formula is used to calculate the Target Price. 

TP = IC / (1-TM/100)
  • Where TP is the Target Price ($)
  • IC is the item cost ($) 
  • TM is the target margin (%) 

To calculate target price, divide the item cost by 1 minus the target margin.

How to Calculate Target Price?

The following example problems outline how to calculate Target Price.

Example Problem #1:

  1. First, determine the item cost ($).
    1. The item cost ($) is given as: 60.
  2. Next, determine the target margin (%).
    1. The target margin (%) is provided as: 30.
  3. Finally, calculate the Target Price using the equation above: 

TP = IC / (1-TM/100)

The values given above are inserted into the equation below:

TP = 60 / (1-30/100) = 85.72 ($)

Example Problem #2: 

For this problem, the variables needed are provided below:

item cost ($) = 70

target margin (%) = 50

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

TP = IC / (1-TM/100) = ?