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) = ?