Selling Price from Margin Calculator
The selling price calculator builds a price up from your cost and the profit you want to add. Enter the unit cost and the markup percentage you want on top, and it returns the selling price, the profit per unit and the margin that price delivers. Use it when you know what you paid and how much profit you need, and you want the price to charge. These are estimates for planning — validate final prices with your accountant, especially where tax applies.
Calculator
The formula
Selling price = cost × (1 + markup ÷ 100)
Apply the markup percentage to the cost to get the profit to add, then add it to the cost for the price. The margin the price achieves is (price − cost) ÷ price × 100, which is always smaller than the markup you entered.
Worked example
A unit costs $25 and you want a 60% markup.
- Profit added = 25 × 60% = $15
- Selling price = 25 + 15 = $40
- Margin = 15 ÷ 40 × 100 = 37.5%
So pricing at $40 gives $15 profit per unit and a 37.5% margin.
Frequently asked questions
- I want a target margin, not a markup — what do I do?
- Margin and markup are related: a 37.5% margin equals a 60% markup. If you know the margin you want, convert it to markup first, or use the profit margin calculator to check the result the other way round.
- Should the price include delivery?
- Only if your cost figure already includes it. Decide whether shipping and handling sit in cost or are charged separately, and be consistent across products.
- Does a higher price always mean more profit?
- Not necessarily — higher prices can reduce sales volume. Use the break-even calculator alongside this to see how price affects the number of units you must sell.
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