When to use this calculator
Find a selling price that achieves a chosen gross margin. A target margin must stay below 100%. Include relevant costs before calculating.
Explore the pricing & break-even calculators for other questions in this topic. For a related calculation, use the Target Profit Units Calculator: Find whole units needed to cover fixed costs and a chosen operating profit target.
PUTTING IT INTO PRACTICE
Selling Price: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Unit cost | 60 |
| Target gross margin (%) | 25 |
| Result | 80 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: Price = cost ÷ (1 − margin/100).
- The result is 80 currency units, rounded for display.
How to interpret your result
A target margin must stay below 100%. Include relevant costs before calculating.
Margin uses sales revenue as its denominator, while markup uses cost. Contribution deducts variable costs before fixed costs. Break-even calculations assume the same prices, variable costs and product mix remain in place.
Frequently asked questions
Why are margin and markup percentages different?
They use different bases. The same monetary profit is divided by selling price for margin and by cost for markup.
How do I use the selling price calculator?
Enter unit cost, target gross margin (%). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Price = cost ÷ (1 − margin/100).
What should I check before using the result?
A target margin must stay below 100%. Include relevant costs before calculating.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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