This calculator shows the maximum cost you can afford while still achieving your desired profit margin. Instead of setting your cost first and hoping the margin works, this tool allows you to reverse the process and define your margin target upfront. This is especially useful for ecommerce sellers, retail businesses, wholesalers, and manufacturers who need strict control over profitability.
By entering your selling price and desired margin percentage, you can instantly see the highest cost you can pay for a product or service. This helps with supplier negotiations, sourcing decisions, and pricing strategy. It ensures that you do not accidentally accept costs that reduce your margin below sustainable levels.
This is particularly important when factoring in platform fees, VAT, shipping, packaging, and advertising costs. If your base cost is too high, your final profit may be significantly lower than expected. Using this calculator helps you maintain consistent and controlled margins across your entire product range.
Formula: Cost = Price × (1 − Margin)
The result shows the maximum cost you can pay while maintaining your target margin, along with the profit remaining after that cost is deducted from your selling price. This allows you to instantly assess whether supplier pricing or production costs are viable.
The calculator multiplies your selling price by the remaining percentage after margin is removed. For example, a 40% margin means 60% of the price represents cost. The result shows the maximum cost allowed to maintain that margin.
This ensures your pricing remains consistent with your profit targets, rather than reacting to supplier pricing without control.
Example 1: Selling price £50, margin 40% → cost = £30 → profit = £20
Example 2: Selling price £120, margin 25% → cost = £90 → profit = £30
It prevents overpaying for products and protects your target profit margin.
Yes, it is ideal for Amazon, Etsy, Shopify, and retail pricing strategies.
Your margin drops below your target, which can reduce long-term profitability.