Calculate a target selling price from unit cost and your desired margin, markup or profit per unit, or find the target cost a selling price allows.

Margin is profit ÷ selling price. No overhead, waste, taxes or fees are added.

Clears when you change the target type.

Comparison and totals (optional)
Blank omits the price comparison.

Blank omits totals. Enter a positive whole quantity; no quantity of 1 is assumed.

Target Price Formula

For a target profit margin below 100%, the margin mode uses the following price equation. Margin is profit divided by selling price; markup is profit divided by cost.

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

To calculate margin-based price, divide item cost by 1 minus the target margin divided by 100. The other modes apply markup to cost, add a profit amount, or increase a positive current price. Unit cost and the selected target are required; a blank optional current price omits comparison, and a blank quantity omits totals.

How to Calculate Target Price?

The following examples use the margin formula. The calculator’s profit, percentage ratios and quantity totals use the unrounded theoretical price. A separate cent row rounds that price upward before display rounding. Margin at a zero selling price and markup at zero cost are undefined.

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) = 600/7 dollars ≈ $85.714286. The nearest cent is $85.71; rounding the calculated price upward to a whole cent gives $85.72. For this positive-cost example, $85.72 meets at least the 30% target margin. The theoretical profit and ratios use 600/7, rather than either cent-rounded price.

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) = ?