Pricing Calculator
Calculate the selling price needed to achieve your target margin.
Results
Work backwards from your target profit margin to find the right selling price. Enter your cost per unit, target margin and any overhead percentage. The calculator solves for the price that delivers your desired margin after all costs are covered. This is the inverse of the profit margin calculator - start with the margin you want, get the price you need.
Explore all our business and pricing calculator tools, or browse the full finance calculators.
Frequently asked questions
Divide your total cost by (1 - target margin). For a $30 cost with 40% target margin: $30 / (1 - 0.40) = $30 / 0.60 = $50. The $20 profit on the $50 price gives exactly 40% margin.
Overhead accounts for indirect costs allocated per unit: warehouse costs, equipment depreciation, quality control, packaging that is not in the direct cost. A 10% overhead on a $30 cost adds $3, making the total cost $33.
Research industry benchmarks. Software: 70-80%. Retail: 25-50%. Food: 30-35%. Manufacturing: 20-40%. Your margin needs to cover operating expenses (rent, salaries, marketing) and leave net profit.
Cost-plus pricing (this calculator) ensures profitability. Value-based pricing charges what customers will pay regardless of cost. The best approach combines both: use cost-plus as a floor and value-based as a ceiling.
Higher prices increase your contribution margin, reducing the number of units needed to break even. But higher prices may reduce volume. Test different price points to find the optimal balance.