How it works
Find the selling price needed to reach your target gross profit margin.
A worked example
A product costing 60 needs a selling price of 100 to achieve a 40% gross margin. A 40% markup would instead give a price of 84.
Before you use the result
These calculations describe gross amounts. They do not automatically deduct overhead, payment fees, returns, tax, or financing costs. A gross profit or margin is not the same as net business profit.
Keep inputs on a consistent basis. Use the same currency and time period, and check whether your amounts include tax. Calculations use full precision internally; displayed monetary values are rounded to two decimals.
Questions, answered.
How do I price for a target margin?
Divide cost by one minus the target margin as a decimal. A cost of 60 and margin of 40% require a selling price of 100.
Can I enter a 100% target margin?
No. With a positive cost, a 100% margin cannot be reached at any finite selling price.
Should I round up my price?
Use a suitable price for your market, then verify the resulting margin with the profit margin calculator. Rounding the price can change the achieved percentage.
Calculation methods: read our methodology. Found a problem? Send a correction.