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

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 (%) 

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) = ?