Selling Price Calculator

What this tool can do

Calculate price from cost and target margin. Calculate maximum allowable cost. Calculate price from a target profit. Show required markup and resulting margin.

Formula and methodology

Selling price = cost ÷ (1 − target margin as a decimal).

Worked example

A €60 cost with a 40% target margin requires a €100 selling price and produces €40 profit.

Margin is based on selling price

A target margin must be removed from one, then used as the divisor. Simply adding the margin percentage to cost calculates markup instead.

Use allowable cost before committing

When the market price is fixed, reverse the calculation to see the maximum cost compatible with the target margin.

Privacy

Calculations and draft documents run in your browser. Entered values are not included in FollowIncome analytics events.

Next step

Use the result as a planning aid, then track actual invoices, payments, expenses and projects in FollowIncome.

Frequently asked questions

How do I price for a target margin?

Divide cost by one minus the target margin expressed as a decimal.

Why must target margin stay below 100%?

At 100% no portion of selling price remains available to cover cost, so a finite price cannot be calculated.

Does the price include tax?

Only if the cost and selling price you enter include tax. The calculator does not infer tax treatment.

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